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
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«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'
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iKiKii
tol
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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