“Twice a year - after spring and autumn seasons - we sit down with our suppliers to go through the prices AF Members have paid for crop protection products.
“This process covers Members who ordered through the desk at AF HQ and those who are serviced and supplied directly. We do it to make sure all AF Members are benefiting from being part of the largest collective group of farmers in the UK, and the buying power that comes with it.”
The process of price adjustments
“We invite each supplier here to AF HQ. We go through every invoice and product, line by line. Over the last month I've spent 40 hours with them purely on pricing adjustments.”
“We learn which supplier buys what well, who doesn't, and how willing they are to move on price. We also get the picture of where the whole market is for the current and coming year. It builds our knowledge of product supply and likely availability, and which suppliers are uncompetitive on particular products.
“It’s about more than just the cheapest price. We’re working with Members and suppliers to make sure best value is achieved.
“For instance, this year there are some autumn options significantly more expensive than others. We’re working with suppliers, Members and their agronomists to ensure that the best value products are being ordered through AF.”
Why retrospectively rather than negotiating prices in advance?
“We do negotiate prices constantly throughout the season as suppliers try to gain more business or the market shifts. Some products over the course of the season have changed in price by up to 20%. This process ensures all Members benefit from changes in the market.
“Price adjustments mean we can avoid splitting orders and sending out multiple vans to the farm. By having the agreement with our suppliers that even if the price is occasionally higher on the day, we will carry out the price adjustment process at the end of the season.”
And when a supplier is unwilling to meet us on price?
“With a turnover of £50 million, all of our suppliers are willing to work with AF to achieve the best value for Members.”
“The AF membership is a hugely important part of suppliers and distributors businesses. Working together with them means we get the right products delivered at the right time, while ensuring that AF Members always get best value!"
To find out more about how buying your crop protection products through AF, get in touch with your AF Crop Protection team.
Want to know other ways your AF Crop Inputs team can save you money and time? Find out here.
Or to see how we’ve helped other Members to make the most of their membership, check out our latest Member Stories.