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PPCS: No more "special deals"

By Joanne Marshall-Crack

1 December 2007 -- "If anyone has evidence of a 'special deal' involving PPCS this season, I want to hear about it," that's the message from PPCS Chief Executive Officer Keith Cooper.

Mr Cooper has said his company will not be supporting third-party traders and "special deals" this season.

"We're attempting to minimise costs which all farmers share, by not dealing with the dealers. We've said no more deals. We've done that... it's cost us in stock through the winter but we've got rid of the inequality.

"The days of paying some farmers more on the back of one-off deals are over. Indirectly we are reducing costs by taking out the middlemen and moving towards having all farmers on the same basis."

Mr Cooper said farmers need to work out what adds value... "if no-one dealt with the dealers, if farmers stand up and commit their lambs then there is no void for dealers to fill."

"We've stood up and tried to show some leadership and we've said that we are disappointed that some other farmer owned companies are not showing the same level of leadership."

Of course there are still the critics who say that while PPCS might say 'no deals' they believe they will still occur.

To this Mr Cooper said: "We just don't have them and we won't have them."

The company has been involved in plenty of deals in the past but now is adamant that it will be fair with its shareholders.

"You can't change history ... we have acknowledged that it wasn't appropriate and we are moving forward on a new basis."

Meanwhile, Affco CEO Stuart Weston said, philosophically his company did not like special deals. "Unless they offer something that is unique and distinguishably commercial, special deals tend to add to the cost.

"Where third party agents provide a genuine service/function they have a value, but where they simply add a further layer of cost taking product from paddock to market, there is not a sufficient margin to sustain (them)."



 

... and of interest

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