Analysing Andrew's article (part 1- cons)

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By Dwain Duxson

Analysing Andrew's article (part 1- cons) - Andrew Whitelaw, the proud former Scot, is a well-known Grains and Input Analyst with his company Episode 3. Andrew recently wrote an article about Farmer's working together to save money on Inputs. The article in question, which I think has a lot of merit, can be read here. 

I agree with Andrew that Farming is getting expensive, and we need Farmers to gather together and do something about it. Andrew suggested we call on the state Farmer bodies (VFF, WA Farmers, etc) to form Co-operatives that can group buy inputs to help Farmers save money. 

So, to analyse Andrew's article, I would like to start with some cons today in part 1 and follow up with some pros tomorrow in part 2.

I think group buying has been tried, and in many cases, it has failed at this level. I think it might work in a different form, which I will explain tomorrow. Apart from a few of the larger co-operatives, many have failed trying to achieve the same things. Are our state Farmer bodies up to running something like this? I don't think so. Some are having difficulty even agreeing on how they should be run, let alone trying something new. I think it would make local retailers nervous if large groups of Farmers started putting inputs out to tender. Farmers are loathed to commit heavily, so paying a membership to be part of a Co-op and having them fully commit doesn't seem to work. Farmers love options. Thought on the cons? I will outline the pros tomorrow. Reply to dwaind@farmtender.com.au 

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