WITHAM GROUP NEWS

Woldmarsh: Helping Farmers with Collective Buying Power for over 60 years

Woldmarsh Buying Group has a rich history of saving money for the Agricultural Community. With over 1000 members and an annual turnover in excess of £115 million, we caught up with Stuart McKenzie, CEO, who kindly reflects on the growth and success of their collaborative teamwork.

What is your role? What are you responsible for?

I am the CEO, responsible for strategy, ensuring financial competency and business  efficiency whilst ensuring that the membership have a say in how their organisation delivers what they need.

What is your background and how did you end up at Woldmarsh?

Although born and brought up in a city, I always loved the countryside. That lead me to study Agriculture at Aberdeen University and through various career moves, running complex processing operations I saw an opportunity to move closer to working with the farming sector.

How long has Woldmarsh been established?

Woldmarsh was formed in 1961 by the merger of two existing groups – Louth Trading Group and Beelsby Viners. We reached the milestone of 60 years in business in 2021 but were unable to celebrate properly so are planning some events this summer instead.

What is the history of the business?

We produced a document at the end of last year which details the history and development of Woldmarsh through the decades. To summarise though, A small group of farmers felt that they could improve their efficiency by collaboration. One of those initiatives was the  formation of Woldmarsh as a member’s cooperative. Our role was to purchase farm inputs efficiently, minimising the effort of all involved and maximising the benefits for farmers and as it turned out for suppliers too.

What does the business do and what products and services do you offer?

We are one of the UK’s leading, member-owned, not for profit, farmer buying groups. We  exist to add maximum value to our members by purchasing farm inputs efficiently. From our humble beginnings and the initial 12 members, we now have more than 1,000 member farms across the country, giving us considerable buying power across a full range of farm inputs. Whilst farmers need to be able to turn their hand to anything, they also need expertise. Woldmarsh is their professional purchasing organisation, supplying the goods and services they need, alongside informed market commentary guiding them in making better decisions.

How many employees do you have?

21 – a combination of full and part-time employees.

Who are your customers?

We have over 1000 farmer members spread across the UK, many of whom are family  farmers, with the majority based in Lincolnshire, Yorkshire and the counties surrounding  these. They farm half a million hectares of predominantly arable land but like many farms are heavily diversifying. Whilst you would also expect to see farms with animal enterprises, you will also find farm shops, accommodation, entertainment venues, wedding venues, environmental schemes and many other schemes for maximising the use of land and buildings.

What is your company ethos?

We care. We care about our industry, our members, and our community. Our role is to make the markets transparent for our membership. We believe you can only make the best  decisions for your farm if you know all the options available and what they will cost. We are also committed to running an efficient organisation. We have a long term aim to keep our running costs below 1% of our annual member turnover, hence average member levies are also below 1%. It is only possible to do that if we embrace innovative thinking and new ideas. The question we always ask ourselves is, does this benefit the membership? If it does, we will embrace it.

What sets you apart from other buying groups?

Whilst all buying groups seek the same end point, in satisfying what the membership wants; we all do that in different ways. We operate the way our members want us to. In our case that is a compact, agile, highly efficient, knowledgeable organisation that can adapt to whatever that member needs. We always remember that we have over 1000 members all of whom are unique businesses in their own right. We have to be flexible to meet that diversity.

Congratulations on reaching your 60th year milestone

Yes the milestone of 60 years in business in 2021 was a great achievement and we will celebrate this at a series of events this summer on our Chairman’s farm. I am stepping down from this role as Woldmarsh CEO in June after 14 years. Heather Claridge will become the first female CEO of Woldmarsh, and only the 6th in the history of the company.

How has the last year impacted your business?

Farming on a day by day level has been impacted very little. Crops and animals grow and harvests come at the same time of year. What has been impacted is the supply of raw
materials. Shortage of delivery drivers, delays in building materials, wood, steel and wearing parts have been significant.

Suppliers stocking up for the impact of Brexit, helped in some areas such as agrochemicals. However no one can escape the impact of the rise in the price of oil or gas. We purchased our
member electricity contracts for 2022 way back in early 2021. That means they are protected for now. 2023 could be a real challenge for all of us.

What are your biggest challenges now?

Volatility, especially around the energy markets and products derived from oil. There is also the challenge of government legislation. Legislators often have little understanding of  farming and make decisions resulting in unintended consequences.

Which products do Witham supply to you, and what for?

The full range of oils for agricultural machinery and related products including engine, hydraulic and gear oils, antifreeze, and sundry products as well as paints and wood preservatives.

What is important to you in a supplier?

Understanding our membership and what our members value from a supplier. Consistent product, reliable delivery and competitive pricing. Quick reaction to quote requests and expertise in matching product to machine. Knowledge of our market and expertise in agricultural machinery and associated products. Not having to chase up orders. Ability to supply.

Why do you choose to work with Witham Group?

Witham’s long term reliable reputation, consistent product quality, product range, and
availability of product is of great value to us. As the products are blended in-house, delivery
times are quick and very reliable. We also get no nonsense, good technical advice, that in most cases, simplifies the application and use of oil on a farm. An efficient working  relationship throughout the two businesses, from ordering to accounting, not forgetting the competitive pricing is a great recipe for success. We have worked together on charity events including the annual golf day which raises money for LRSN. and lets not forget Witham’s overall support when seeking to raise money for charities generally. Free farm survey for members including rationalisation of oils used on-farm and provision of free oil tanks (conditions apply), reducing waste, spillage, and contamination. This is a service that many members appreciate and we offer it to new members. Many have been astonished at how it has revolutionised their workshop.

If you could do it all again, what would you do differently?

Why have any regrets? The mistakes we make, if we learn from them and sincerely apologise
if we make them, make us better and stronger. I hope that comes across in our dealings with
members and suppliers.

What has been your proudest moment?

If we are talking work, it’s been taking this role. I have loved every minute of it.

What gets you out of bed in the morning?

There is never a dull day at Woldmarsh and no two days are the same. Why wouldn’t you
want to get up and throw yourself into that type of environment?

Who would be in the passenger seat with you if you could choose anybody and why?

My wife. I could not have done what I have been able to do without her support and at times wise council. Its rare we get to say publicly how much I have appreciated that.

Who is your inspiration in business?

There have been so many, most of whom have helped me personally and given me the benefits of their wisdom. But probably my most inspiring coach was a boss who would defend my actions to the hilt in public and then point out the error of my ways in private. A lesson I have never forgotten.

What are your plans for the business in the future?

We intend to do more of the same. We have been successful for over 60 years. We will never forget what our core strengths are but will continue to adapt to accommodate the changes we see in agriculture.

For more information about Woldmarsh visit their website here.

Leave a Reply

Your email address will not be published. Required fields are marked *