A36-L«nc«ster Farming, Saturday, June 5, 1999 Farmers Find Success, Fellowship Through Cooperative Purchasing (Continued from Page A 1) costs, and help to promote efficiency The group, formed three years ago by Me Keane farmer Tom Rand with the help of extension agent George Wilcox, consists of about 45 members who meet monthly to share ideas, get information, and coordinate their buying efforts - taking advantage of group discounts on everything from bull semen to fax machines Initially, Rand says, he assembled the group, known as the Erie County Dairy Producers, after attending a dairy days gathering and hearing about a New York co-op that had done group purchasing "I called George Wilcox," Rand explains, "and said, 'How do we get one of these goingI’’ 1 ’’ "George said to get some farmers together, meet over lunch, and discuss some things," Rand said "There were maybe 10 of us in the beginning, and that’s what we did "I think that's why it has worked out, because when we first got started we just sat down and had lunch and talked; we became friendly with each other," he said. "Guys would come in and tell stories - maybe about a tractor breaking down - something funny that happened to them. We got to be like a family, and I think that's part of what's made it work - but the savings are pretty substantial." And although the discounts stem largely from volume, Rand says a large part of saving also comes from paying in cash - a possible reason that many co-ops fail "You need good people who will pay their bills," Rand said "Everybody basically knows You're invited To A SUNNYSIDE DAIRY FARM - Kemp ton PA . 1 DESIGN/EXCAVATION/BUILDING CONST. BY MARTIN CONSTRUCTION COMPANY KUTZTOWN, PA 610-683-6120 EQUIPMENT BY: gSSSSS’m Bally, PA 610-845-2261 FINANCING BY FIRST UNION HCI NATIONAL BANK AGRI-FINANCE I TnM|U' DEPARTMENT U' READING, PA 610-655-2881 we do cash transactions. If you buy something, you've got to pay for it right away. You can save a lot of money by buying in bulk and paying cash. Vendors like it because they like the volume "That's the trouble with farmers, though," Rand said, "a lot of them are slow about paying. If you tell somebody you'll pay them cash - our volumes are really big - they like that. "I sell corn and sometimes I don't get paid for a month. But if someone comes in here and says, 'Hey, 1 want 10,000 bushels of corn and I'll pay you cash tor it' - that's nice " Although the group has enjoyed savings on a number of items - including seed, chemicals, bailer twine, stretch film, tractor tires, engine oil, and paper towels - says extension agent and group participant George Wilcox, it considers other things before making a purchase. "The purpose isn't solely to negotiate price," he says. "Basically, they're saying, 'lf you bill one person rather than several, we offer you cash and guarantee payment, and we are buying a given volume - that we would like to receive the cash discounts, the volume discounts - those things.'" With those buys, where they’ve earned the volume discount, the savings have been in the 25- percent range, with up to 50- percent off on a couple of articles they bought factory direct. Each deal is individual. But they haven't always taken the lowest price; they've looked at quality, service - those things along with it. "Their basic philosophy is, 'we'll total up the volume, we'll stipulate the conditions (one delivery point or several), you take a look at it and give us a bid, and we'll decide from there. It's OPEN HOUSE! Wednesday * June 9th * 10 AM to 2 PM not a process of pitting one supplier against another - just a straight-forward transaction," Wilcox said Although most members of the group are dairy producers who joint-purchase dairy-related products, a few grain producers belong to the group, which helps the group also get more favorable WITH FLOTATION TIRES TO MINIMIZE SOIL COMMOTION Available with complete line of spreading tool bars and precise flow control to spread manure the ecological way eliminating spray drift and reducing odors. Our tool bars are designed to apply hog or daily manure on growing fields, between rows of corn or on harvested fields. „ •Vokopokottomlormero • Standard •xtorlor complolo dm ooL opoiy prloior aotf otolkoao pilot. * Low prafilo tuk for wwlwom ddHIIIy >nd rtwblllty. «I The Kunkel Family wishes to thank Jeff Brobst Carpentry Rigidply Rafters Wayne Stump Contracting Plyco Corp Zook Masonry H&L Concrete (Rahns) Shank Door Co. Phares Fry Well Drilling Rabenold Fabrications East Penn Welding Weaver's Insulators Berg/Bennett, Inc. Farmcredit FMA Land 0 Lakes, Inc. Reading Foundry & Supply 4 STOCK UWUJBUWTIKtMLEJUaIOn JnwCl' XUDQK-Z3MIOMMUICJU- T fc= 'BXi/ iKiKii tol ilejforKeim I II II II Norbco Inc Fast Supply AgPro, Inc. Niff Corr Corp. Albright's Mill Sire Power Inc. PA DHIA Agri-Nutritional Consulting Inc Schaefer Ventilation Equip deals on seed To keep the purchases manageable, Rand says, individual members will take on projects according to what they want to buy. "1 run the meetings," he says. "I have things written down that I want to talk about. After I do that, somebody might say, 'Hey, FARM EQUIPMENT MANUFACTURER how many of you guys are interested in buying 50 gallons of 01F" Whoever is interested, says Rand, can write his order on a sign-up sheet or fax it by a certain deadline this Tires, Brakes, tights, I?W.R9nfaf-|14,e00 Spreaders Calumet 1500 Gal Vacuum Tank, 141x16 1 Tires NEW Houle 3600 Gal, Spreader 23.1x26 Tires, Brakes Rental Houle 3600 Gal. Spreader, w/Disc Incorporators, 23.1x26 1999 Rental $13,450 Calumet 3750 Gal. Spreader, 50x21x20 tires 1994 Houle 5250 Gal. Spreader w/Steermg, 28Lx26 Tires, Brakes Houle 6300 Gal. Spreader, (6) 28Lx26 Tires, Steering Axle, Brakes, 1999 Rental $25,600 Pumps Houle 32 ft. Lagoon Pump, ‘99 Rental $7,400 Houle 32 ft. Lagoon Pump, 1997 $5,800 Houle 32 Ft. Multi Purpose Lagoon Pump, 1999 RENTAL Houle 20” & 28” Maxi-Pump —Financing Available — [Wt-'ii'- Hoio To Sono You SNOOK’S EQUIPMENT RD 3. Box 130, Mifflinburg. PA 17844 570-966-2736 Ask For Ernest or Dean k 68*x92 f Milking Center w/DBL 8 Subway Parlor & Hospital Area. iOS'xdd'xld' 6 Row Nat Ventilated Free Stall Barn Directions: From 178 take the Lenhartsville Exit.Rt 143 North for 4 miles to Coastal Gas Station, turn left on to Hawk Mountain Rd. Take first left (Gun Club Rd), to Kunkel Rd and turn left. Go to top of hill. 156 Kunkel Road, Kempton PA. Refreshments Provided By Moyer's Catering Although the purchases are on (Turn to Page A 37) $12,500 $10,400 Call $8,900 $6,500 Call
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