John & Tom Seymour / Andrew Gloag
...reducing fixed costs by contract farming
This collaborative venture was formed several years ago between two growing farm businesses. The relationship enables the farming partners to secure a broader range of contract farming opportunities.
Through specialization and concentrating on what they do best they have seen improvements in the performance of their enterprises and increased the utilization of the resources available to them.
Key learning points
The aim of establishing the partnership was to build greater economies of scale for the two farms and to allow each partner to focus on core skills in livestock and cereal production.
The Seymours now take responsibility for all the livestock on his farm units they contract, whilst the second partner, Andrew Gloag, takes care of all arable operations.
John and Tom Seymour have invested in a mill and mix to reduce feeding costs and have achieved lower unit costs of production through growth in their business.
The venture has improved management and performance of each unit by allowing both partners to concentrate on their core skills.
Each business has seen a growth in their turnover whilst managing to keep control of fixed costs.
Share to Farm DVD clips have been produced by The Fred Production Company Ltd.
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