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 .
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 .