Ozzy Scott
Well-Known Member
Giving away margin unnecessarily is bad for business and yes, Image is very important.
However, I don't think one can generalise here. Yes, some buyers are only concerned about buying cheap and competing at the bottom of the market.
Other buyers are willing to pay that bit more so that they can extract more from their market using the image which they work to build (because the traceability/environmental effort etc required for the image doesn't come for free).
I am not going down the road of naming companies here but I know companies buying grain in Ireland in both of the above categories.
Please dont name anyone, I can think of a few in both categories. Would you be able to say what % premium on price the carbon aware company are offering over a standard company.
I would be afraid to hazard a guess of how much of Irelands grain is been bought by carbon aware companies? Single digits I would think.
I also dont see paying a higher price, as you do, in giving away margin. They can extract a higher price from their end product due to targeting environmental aware customers.