Inputs Project Team Report

Achievements and Work Done

IFA fertiliser campaign saves farmers millions

Publication of weekly fertiliser survey prices during the peak sales months by IFA’s Inputs Project Team’s has forced thetrade to reduce their margins substantially and give competitive quotes. In addition the advice to farmers to co-ordinate deliveries on a formal or informal basis thus maximising load size has enabled farmers to dramatically reduce associated delivery costs.

Input price surveys empowering growers to bargain for better prices

The publication of numerous surveys, including veterinary testing fees, seed, agri-chemical, fuel and fertiliser price surveys by the Animal Health and the Inputs Project Teams and the National Grain Committee in the national media forced prices down considerably in 2011.

Farm-to-farm trade increases competition

Increased competition from farm-to-farm grain trade has forced the compound feed mills’ to become more competitive.

Mill margins exposed with publication of feed ingredient price updates

The bi-monthly publication of wholesale feed ingredient prices is forcing down compounders margins.

Ongoing price surveys empower farmers to bargain for keenest prices

Grain & feed ingredient (bi-monthly)
Seed (winter and spring)
Fertiliser (weekly)
Agri-chemical (Over 400 prices on herbicides, fungicides and insecticides)
Veterinary medicine
TB testing fees
Fuel price surveys (bi-monthly)
Dairy and beef compound feed (planned)

Priorities for 2012

Realigning input costs

The successful fertiliser, feed ingredient, agri-chemical, fuel, and veterinary medicine price campaigns will be repeated in 2012. The number of items covered by surveys will be increased and published as the season progresses. The IFA team will collate input prices from other parts of the world to ensure that Irish farmers will be able to source their inputs as close to world price as possible.

Energy margins

Energy is the third biggest expenditure item for farmers. In an effort to ratchet up competition the Team will be conducting a detailed study to establish the margins taken at different levels along the fuel supply chain.

Hedging and forward purchasing / selling opportunities

Following on from the successful development of a forward selling system by the Grain Committee for grain farmers the Project Team is pursuing talks with fertiliser suppliers and distributers to develop a similar system allowing farmers to hedge fertiliser prices.

Promotion and development of group purchasing

Substantial cost savings can be achieved through group purchasing and planned deliveries of inputs and services. An increasing number of suppliers are prepared to supply purchasing groups direct where volume orders are involved or if not to give end of season rebates. Talks are ongoing with a number of manufacturers and distributors to foster direct sales to purchasing groups.

Further development of farm-to-farm trade critical

The project Team in conjunction with the Grain Committee will continue to vigorously promote and develop farm-to-farm trade as a means of boosting grain growers’ incomes while reducing livestock farmers feed costs for the 2012 season.

Ends

Chris HayesFintan Conway

Project Team LeaderExecutive Secretary

Inputs Project TeamInputs Project Team

January 2012