Posted 10/31/2015 10:15 (#4868389 - in reply to #4867822) Subject: RE: Negotiating inputs
Amherst WI
povertypoint - 10/30/2015 21:25
Been wrong before, sorry. I had been told co-ops were set up to put all producers, big and small on an equal playing field. Same price was paid for grain weather 100 bushels or 100,000 and a bag of feed cost the same weather you bought 1 or 100. Been wrong before and am sure I will be again...I was thinking of small local coopertives.
This was not the case when I worked at the coop, actually the private retailer to a lesser degree either.
The coop had discount breaks on the amount of tons you bought. Say $400 was the first level, then at 20-50 tons it was $395 then at 51-75 tons it was $390 and so on.
At the retailer it seemed like they were willing to lose on one product to make up for it on another.
Say they got a good deal on DAP but were out of the market on Potash. Make 9-23-30 and it would fix it. They wouldn't lose money on the deal just to do it.
I guess you could buy your own blender and stuff but you'd have to be pretty big to do that. Or a group of farmers could band together and......well that won't work long term I guess. LOL
Negotiating inputs
