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Farmlands Cuts Fertiliser Margins

Published: Mon 3 Nov 2003 10:40 AM
Farmlands Cuts Fertiliser Margins
Farmers are set to save money on fertiliser as rural retailer Farmlands today totally cut its fertiliser margins to further strengthen the co-operative’s position in the marketplace.
Farmlands Chief Executive John Newland said Farmlands Direct is a new initiative with fellow co-operative Ballance Agri-Nutrients.
He believed the bold step to remove the margin on fertiliser sales would change the face of how farmers purchase one of their greatest and most necessary on-farm expenses.
“We will no longer add a margin to fertiliser sales because we want to ensure our members get the best deal, and in turn the co-operative will receive greater member support.
“While we are giving up our margin on fertiliser, we believe the real benefit will come through attracting even more support from existing and new customers who will choose to deal with Farmlands ahead of our competitors,” Mr Newland said.. Farmlands expects the extra business it generates in member support from this move will far outweigh the revenue margin on fertliser sales.
“It will also ensure that Farmlands is offering Ballance products inline with any other direct offer in the market.
“The added advantage of this is that Farmlands’ members will continue to get all their normal member benefits.
“We are offering something that none of our competitors offer and this move is a continuation of our good service and advice,” he said.
Both Farmlands and Ballance offer year-end rebates on fertiliser sales.
Other benefits include simple pricing formulas, direct pricing on Ballance products, immediate order confirmation, member rebates on fertiliser purchased through both companies and a full range of payment options including credit card for additional rewards.
“We have a strong relationship with Ballance Agri-Nutrients and it’s great that we can continue to pass on these benefits to the customer,” Mr Newland said.
Historically, the margin on fertiliser across the market has been between 1% and 3%.

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