GLBV – French Livestock Marketing Cooperative
...adding value through collaborative livestock marketing
GLBV is a cattle producer cooperative based near Limoges in mid France. The group has some 400 members and is responsible for marketing the production of some 30,000 Limousin suckler cows.
In the last few years the group has developed innovative ways to assist members to produce cattle to meet customer requirements more closely. This has consisted of developing a number of different "formulas" for cattle finishing which allow cooperative members to opt for different risk and reward models:
- Members are paid on a bed and breakfast type contract to finish cattle. This helps new entrants to farming who do not have sufficient collateral to finance the working capital required to purchase and finish cattle. The cooperative owns the cattle through this period and finances the variable cost inputs required.
- Members can opt for a fixed fee payment for finishing cattle with caps and collars to allow for changes in variable input costs.
- Members can finance the whole operation and work to spot prices with the knowledge that the animals that they are finishing will have a certain market.
In addition to developing this formulaic approach to cattle finishing the group has also been able to develop partnership arrangements with other livestock marketing cooperatives selling Limousin cattle.
To date some four cooperatives have come together which has allowed for significant cost savings in staff costs and led to the groups having more influence in the marketplace. The partnership is now committed to marketing the production of a total of 100,000 Limousin suckler cows.
Key Learning Points
Through developing this formulaic approach to cattle finishing the group has been able to meet customer requirements in a more effective manner whilst also delivering more benefit to cooperative members.
The group also has much better knowledge of the animals in the supply chain as for the most part the cooperative is placing those animals on farm with members.
The different options available to members increases their ability to enter the business as the barriers to entry can be as low as simply being able to provide accommodation for cattle and the labour to manage those cattle. This is particularly appealing to new entrants.
Developing partnership working with other cooperatives has taken a long time even though all the cooperatives involved could see the benefits they were concerned about losing their own individual identity.
The partnership recognises this issue as all the cooperatives involved in the partnership still retain their own identity and corporate structure but work together to market cattle.
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