Farm Stock (Scotland) Ltd exists to ensure that group members obtain the highest possible returns for all classes of stock. This is achieved in two ways – minimsing marketing costs and maximising prices. A tightly controlled operation in conjunction with the high volumes of both sheep and cattle traded ensure low administration costs per head resulting in significant savings to producers. Average
commisions charged in the 2012/13 marketing year were 2% for sheep and 1.6% for cattle. Access to a wide range of outlets is a key part of Farm Stock’s strategy to maximise prices. This ensures all types of stock can be matched to outlet demand on the day the are marketed. In terms of prime stock, Farm Stock deals with all of the major and many of the smaller UK abattoirs. Daily contact with this extensive and diverse range of outlets ensures that Farm Stock staff and the fieldsmen team can match stock with the most appropriate and profitable destination on the day. Furthermore the high volume of prime livestock traded brings improved negotiation power with abattoirs often allowing Farm Stock to achieve higher net prices on behalf of producers. With its scale of operation Farm Stock is also able to find and access niche markets for specialist classes of stock. In terms of store and breeding stock, regular contact with farmers over the length and breadth of the country ensures that the requirements of both buyers and sellers can be matched. By trading from farm to farm haulage and marketing costs are kept to a minimum. With high stock values and a highly volatile and difficult market for both UK abattoirs and live outlets, security of payment is of increasing concern. Payment for all prime and store stock traded through Farm Stock is 100% guaranteed through external credit insurance. A small charge per head is levied for this guarantee. Farm Stock’s vision of the future is to create a major force in the marketplace capable of representing the interests of producers of all classes of sheep and cattle. In terms of deadweight marketing this can only be achieved through a position of strength arising from sufficient volume to negotiate with abattoirs and ultimately retail outlets. A countrywide network of both buyers and sellers ensures access to a wide variety of store and breeding stock outlets at minimum marketing costs. The Farm Stock philosophy of creating strength and adding value through co-operation hinges on support from as many livestock producers as possible but recognises that this can only be achieved by a strong, competitive and attractive commercial package. The current producer package includes:
•Full Services from a team of highly experienced fieldsmen who are kept up to date on prices and demand on a daily basis and who are able to advise on the best outlet for different classes of stock on the day they are marketed.
•Fieldsmen will draw stock where required and provide advice on finishing stock to meet market demand.
•Access to a wide range of UK abattoirs for prime conventional and organic sheep and cattle.
•Advice on marketing calendars and access to niche markets for specialist classes of livestock.
•All types of store and breeding stock traded direct from farm to farm.
•A highly competitive commission rate of 2.125% which compares very favorably with rates of up to 4% charged by other routes to the market. This very low commission rate is made even more competitive by Farm Stock’s capped rates of £1.50 per sheep and £20 per cattle beast which in the 2012/13 marketing season resulted in net commission rates below 2%.
•Payments by BACS direct into a nominated bank account within 7 days of kill.
•100% guaranteed payment for all stock marketed through credit insurance. A charge of £0.10 per lamb and £1.00 per cattle beast is levied for this guarantee.
•Completely transparent abattoir returns and self-billing sales invoices showing all weights and grades, abattoir deductions, haulage and marketing charges.
•Farm Stock operates its own colour coded Lamb Grid devised to give producers as much feedback about their grades as possible. View Lamb Grid Interpretation
•Regular single farm reports summarising all weights, returns, grades and outlets benchmarked against Farm Stock averages, providing a complete and comprehensive record of all stock traded and a useful management tool to compare individual farm performance against other producers.
