In todays’ business environment, your cooperative faces unprecedented challenges as we work to serve our patrons. Supply chain problems, ingredient and materials shortages, labor/staff limitations, rising costs of fuel, high cost of replacing equipment, and regulatory mandates are constant stressors on our business.
The feed supply business, like farming operations, is extremely labor and equipment-dependent. We have had issues with ingredients and essential nutritional additives arriving to feed mills on time due to trucker shortages in the past year. Products we used to order and receive in 48 hours now take as much as four weeks or more to arrive. We used to order and forget about it- the product just showed up. Today, we order and then track, follow up, and worry about when the product will arrive.
Replacement of rolling stock, milling equipment, repairs, and preventative maintenance have increased in cost 25-50% in a short two years! Labor costs to retain and attract good workers have gone up as much as 25%! Fuel is also much more expensive than a year ago. Diesel, the primary fuel used in feed delivery, is up over $1.10 a gallon in the past year and shows no sign of going down while at the same time regulatory emissions controls reduce miles per gallon.
Despite the challenges mentioned above, United Cooperative’s Feed division has continued to find efficiencies and cost containment measures. We ask our customers to help us in reducing costs by doing the following:
Please help us reduce your feed costs by working to improve efficiencies and effectiveness.
Feed Marketing Manager