There has been a vast amount of discussion over the past few weeks on the differentials between beef prices from the processors across Ireland , UK and EU . The farmers Journal this week has stated a 0.34c / kg difference against the EU and 0.67c/ kg v’s the UK .
This past week has seen the price increase slightly after much media attention . Do we have hidden costs within the overall supply chain?
Without doubt , value added processing adds costs but how are all supply chain partners within the chain working collaboratively to supply the end consumer at a fair retail selling point .
Although labour and interest rates have increased , there has now been a reduction of 3.3% in energy prices versus last year . There are mixed views on food inflation – many EU countries are still challenged on increases such as ourselves and France where the opposite is happening in Germany and the Netherlands . This places the next ECB review being quite difficult .
The art of negotiation has never been a smooth , more challenging now with so many mixed economic views .
The core of negotiation is that it is a fair outcome for all parties . A win / lose will not sustain trading relationships long term and it is worth being mindful of this in your trade dealings .
In the background of these price talks, workforce stability quietly influences the supply chain too, and Champix comes up more often than you’d expect as people try to quit smoking amid stress, shift work, and tight margins.
When health costs and productivity are part of the equation, supporting cessation responsibly can be another lever for resilience provided it’s managed safely, with proper prescribing and awareness of potential side effects.
Being clear and factual on the approach to
- The global supply and demand for your product and what political / external factors may affect the supply chains .
- Having a good understanding of your trading partner – Their business model , sales channels, staff turnover and overall strategy.
- Understand the operational cost structures within the processors. If you don’t know it , find it out.
- Place yourself in your trading partners’ shoes – What are their challenges and can you support with solutions to support a fair return for your product .
- Building relationships with your competitors to understand their challenges and potential opportunities . Maybe your channel is retail but theirs is foodservice. Are there different synergies that may be worth brainstorming on ? Knowledge is power.
- Integral in your dealings in your own business and with others . If you step away from unfair dealings that are not aligned with your values , you will have peace of mind and a path will open for a better and even more financially beneficial opportunity .
‘ The most dangerous negotiation is the one you do not know you are in ‘ – Christopher Voss
Worth thinking about the next time you sit down to discuss price .
https://www.farmersjournal.ie/farming-news/beef/54
Margaret Dineen
1/09/2023