STRENGTH IN NUMBERS
AGMATCH is aimed at bringing farmers together. We believe that by working together, farmers will be empowered to assist suppliers and processors in making the necessary changes needed to drive efficiencies, cost savings and lower input costs.
Ultimately the goal is to increase profitability of farms by freeing up these funds and making them available at the farm gate.
In an ideal world, todays farmer – amongst other skills – must be able to multitask as a top grade farmer, vet, environmentalist, analyst, accountant and marketing expert. These are challenging and time consuming roles to perform solo. Farmers have so far, built themselves around or relied on various organisations; both independent and farmer owned, to handle some of these areas on their behalf. Not only are there costs involved in outsourcing the running of these areas, but disappointingly some organisations have delivered poor service.
VOLUME BY WORKING TOGETHER
The only real way to provide improved financial outcomes for farmers, is for farmers to work together. We believe that 70% of the annual purchases on farms are known months out from required date of use. Good use of this knowledge can save you thousands every year.
The majority of farmers do not compete with each other, so seldom is there a conflict of interest in the pooling of requirements. This opens up the ability for members to use their collective volumes for the benefit of all – regardless of size, with no leakage from additional margins offering greatly increased bargaining power. The result of which will be real benefits to the bottom line of our members farm business.
We have proven this over the last 3 years – many times over. Use us and you will save a great deal of money. Use us by all working together and the potential savings are dramatic.
The AGMATCH site allows members to combine their resources and gain economic scale – thus allowing farmers to cope with buying, selling, marketing and branding. Effectively and at minimal cost.
AGMATCH SYSTEM FUNCTIONALITY:
- Farmer to Farmer Direct Trading
- Rural Vendor to Farmer Trading
- Manufacturer to Farmer
- Importer to Farmer
- Fill a container
- Group Buying
- Group Selling
- Farmer to end user
- Drive market pricing and values
- Rural Event Calendar
- Q&A Community Forum to ask for advice or feedback on ideas
- Technical Library Links
FARMER to FARMER DIRECT TRADING
Bringing farmers together to buy and sell direct, clean up what is excess to requirement, Stock, sell that old tractor it’s a long list anything rural, in a dedicated trading site. Product that you will not use but others might turn what would otherwise be wasted may have a close best before date or you won’t use again for a while return its value in cash for what is needed now.
RURAL SUPPLIER to FARMER
We have some great options for you that we have developed over the last 3 years anything rural we can get for you, Fertilizer, Insurance, Drench, Pipe, Fuel, Calf Meal, Milk powder, Sheep Pellets at values you have not seen before, Dairy Pellets and meal very competitive price stable and sustainable, PKE, Tail paint, Shed chemicals, anything that you need if it isn’t listed just ask and we will find it for you. Our suppliers have proven themselves over and again. Suppliers like the way Agmatch operates as they can get to market cost effectively. We are now instituting systems that allow for easy ordering and order tracking manage freight and they get good support for the most basic of reasons they are very good at what they do and offer real value for money.
QUALITY AND PRICE – an old saying
If you are buying oats and want quality Oats then you must pay a fair price, however if you are happy with Oats that have been through the horse first then these come a little cheaper!
It is relevant and a low price with no quality is pointless and can end up costing much more in the end it’s about the value which is made up of a number of factors of which price is but one, product at any price must be fit for purpose some other factors Quality, service, availability but there are many.
We have to get the best quality at the best sustainable price.
BENEFITS OF SCALE
Scale has often been misused and what has been bought in volume at good values has not been translated to the end user as values have not been passed on. The reasons are too many to list some of them very real, excessive overhead often plays a part.
Agmatch is making sure that the end user gets these benefits by removing the barriers and the costs that have been filtering them. Typically large users gain discounts and small users do not we are changing this with volume fulfilments that trigger pricing gains for everyone involved regardless of size. The increased volumes work for everyone and even larger users often do not want large quantities all at the same time, volumes can be spread with monthly deliveries so it works well.
There are significant gains to be made by working with others. No matter what the size of your business with combined volume discounted pricing can be attained anywhere from the smallest to the largest individual transactions.
Can I buy small quantities for immediate delivery at better prices than normal?
Yes you can, we do it every day; we work hard to make sure you get the best pricing possible. We work to get good value seasonal deals that you can just buy as you normally would these opportunities will be listed on the site or just call 021 337 626 or email us and we will sort for you if it is something that isn’t listed. Let us know and we will do our best to locate it.
Volume fulfilments bought ahead at best price which is passed on to our members intact. Example the optimum volume vary 1000 tons or 1000 units it may be a full container depends on the product, there are volume driven price breaks driven by economies in manufacturing cost of freight, buying at the low production period of the season they vary.
An example: A product normally costing $300.00 but if we buy 1000 ton spread it over a number of members everyone involved get’s it for $210 or 30% better. The whole volume will be allocated and sold before the order is confirmed. Some members will have 100 ton some 25 but the 100 ton order would represent a saving of $6300.00 and the 25 ton order would be a saving of $1575.00 so it’s worth doing. There would be no added costs from Agmatch whatsoever.
There are big differences in freight if certain volumes are achieved it is much cheaper to fill a hold on a ship that containerise it. Our suppler still holds a fair margin just passes on the savings that come with scale to everyone involved regardless of size
Collective buying assists cash flow as deliveries can be monthly in volumes that work for members, by using the advantage of volume without having to overbuy. Volume and group buying facilities allow farmers, regardless of size, to purchase in a way that trigger’s lower buying costs.
Volume and group selling facilities also bring farmers and producers together – gaining increased output volume, which triggers better prices and sales exposure – regardless of business size.
Agmatch aims to be the best “go to site” for technical links for the rural market. One area will be an independent library of information with direct links back to the manufacturers, suppliers and various stockists. Questions and technical information can all be found with easy access along with comparisons, to ensure the best product is used for every task. This will also be linked to the forums with farmer feedback. This is will grow with each new product and within 12 to 24 months with each added link it will become increasingly valuable.
There is also a series of forums where information can be shared across areas such as:
- Where do I find a good contractor?
- Feedback posts on experiences with service providers
- How to approach a farming problem.
- Is a product any good or is it awful
Usually someone has already come across a similar issue and has already provided feedback on the Agmatch forum. If not ask the question and there is a good chance you will get valuable responses.
KNOW YOUR MARKET ON BOTH ENDS
In today’s farming business environment, it is essential to know the market from the source to the end user. Agmatch prides itself on this, as we have been involved in sourcing, delivering and marketing for many years. Agmatch is not involved in the trading itself which makes us truly independent and not distracted by self-interest.
We have assisted our suppliers with pricing information and alternative supply that has allowed them to offer product sustainably to our members at the right quality and price. Our measure of success stems from our primary interest, which is for the best financial outcome of our members. If we acheave this then we are rewarded by increased membership.
To ensure farmer’s interests are represented Agmatch has formed a farmer’s council, essentially a farmer advisory and watch dog group. Great care has been taken in the choosing of members of the council they are all currently farming and all very practical and capable people, each separate farming category is represented.
Rick Cameron, Richard Strowger, Greg Nelson, Justin Wilson, David Botting, Ken Algie and Ross Clark
The Farmer’s Council look at the various initiatives with a farmer’s eye to ensure farmer’s interests are always at the forefront.
Cost of Membership a flat fee of $500.00 plus GST per annum for members.
There are no other charges no percentages, no commissions, rebates free jackets or trips to Fiji it is completely transparent.
Agmatch focuses on affordability with user costs a level never before seen in the Agricultural industry. A per annum member outlay of $500 plus GST gives you a full year of transactions and interactions within the site. There is no limit to how many times you use the Agmatch site or adds you can place.
Can we run Agmatch on this level of funding?
Yes we can, after 3 years we have exceeded the membership threshold where Agmatch is a viable entity. From here the business will scale well and increased membership will keep in sync with the additional costs of business.
Everyone in the chain has to be profitable
We all recognise that suppliers have to make a fair profit. It is simple if they don’t they will not be able to continue to offer the service or product. Farmers need to make money as well and if farmer returns improve because of the hard work that they have put in to acheave these gains then they deserve to hold onto the surplus.
In the past the market has moved to soak up much of these gains and has been reluctant to reduce prices when farmer returns are not so good. Over a number of years there has been a reduction in real competition in market. Agmatch is enabling free competition and market transparency for supplier and farmer where both can benefit. We are also allowing the smaller more nimble trader easy market access which is proving very effective.
Payment for purchases
Is direct to the supplier and dependant on the their terms of trade sometimes charged to a card or subject to normal trading terms that the supplier operates with. In the case of farmer to farmer or farmer to the public trades. An email with the method of payment will be sent on acceptance of the deal with bank account numbers etc while Agmatch will send the confirmation email with terms but will not accept any monies or be responsible for them this is between buyer and seller.
There is also an independent secure trust account available to give certainty to the safety of trades. If a member is entering into a transaction with another member that is unknown to them.
How does it work?
The funds are lodged by the buyer in the trust account before the product leaves the sellers care. The supplier is given formal advice of receipt of the moneys in the TA at this stage the product is shipped. Once received and accepted by the buyer the TA is authorised to release the monies to the seller. This system works as the buyer’s money is safe and the sellers risk is removed provided they supply as per the contract. We will make mediation available should it be needed. As at today the Agmatch community has no defaults of any kind in trades or payments our Agmatch members are thoroughly decent and honourable traders that it is a privilege to be involved with.
This account is held by a reputable accountancy firm.
In the 3 years Agmatch has been operating all trades have been successfully completed.
There is a trust points rating suppliers and traders on how trades are managed on a 0-5 star rating system so members can easily check reliability of sellers and buyers. This will become more and more effective as time progresses.
If the situation arises where the need to be pay for before dispatch arises there is a secure independent trust account available where funds can be placed so the buyer’s funds are safe and the seller is assured of payment before dispatch when goods are received the buyer will authorise the release of the funds.
Agmatch members can post offers of produce/goods to buy and sell within their own account. How this differs from other operators in the rural industry is that Agmatch does not trade itself but provides an easy to use a low cost platform that allows farmers to trade from farmer to farmer/service provider on both ends of their business in order to get the best deal available.
Farmer to farmer stock sale, purchases, feed, equipment, labour sharing, selling and purchasing used equipment and excess supplies.
Agmatch has put in place a simple cost effective way to buy and sell stock, equipment, find help, clean up excess, and advertise for many other useful items or services, all within a solid trust system that gives you peace of mind.
Many unused or used items can be on-sold for e.g. farm vehicles, chemicals, surplus equipment etc. This will reduce waste, maximise cash flow and create more efficient use of space.
Suppliers are essential to the rural landscape. Agmatch suppliers are a fantastic bunch of people and companies. They are skilled in their area of trade exceptionally competitive and are driving markets the right way into a more competitive place.
Incumbent suppliers either price properly or lose the business. The group of Agmatch suppliers force market change and they make money doing it, they all have viable businesses they are mostly just like our farmer members owner operators.
They need your support as if they do not get it and the incumbent traders just price match and our suppliers drop away prices will go back to where they were very quickly.
On the Agmatch site suppliers can advertise, participate in tenders for farmers under the bulk buying section and upload product manuals and specials on our PDF library.
Agmatch offers supplier’s opportunities of scale and a clear a true route to their market in a cost effective manner and delivers reduced cost for our farmers.
How Can We Do It?
- We offer assistance with negotiation services
- Post marketing opportunities
- Multiple buy / sell initiatives
- Unity in negotiations.
- Actively chase better buying deals
- Constantly review requirements
- Work closely with suppliers to ensure better and sustainable pricing.
- If a market area is outside of what could be considered reasonable pricing we actively research and promote alternatives that are the right values
- Our site is set up so members and suppliers to logon and upload adds, product information, products for sale wanted to buy – Our role is to provide the engine and keep it tuned provide assistance where necessary we can show you how to easy it is to drive the site.
- The result is an easy to use cost effective site we are very proud of.