UFA GIC's

[DogPatch]

Wilagro...

Some of UFA's problems, and many other retailers took a terrible hit on inventory devaluation especially on fertilizer and chemicals when the prices came down.

Customers who chose to deal with wholesale fuel dealers, chemical brokers etc have to remember that unlike UFA, they don't have to maintain facilities and staff in multiple locations. YET, (the customer is always right) having to react to these dealers AND maintain local operations certainly does put REAL retailers at a disadvantage when it comes to keeping locations open. It doesn't mean that they were bad managers.

[wilagro]

DogPatch: Prices came down on chemicals and fertilizer? I wasn't aware of this...couldn't have been too dramatic a change.

The carping from employees at the local UFA tells me a different story where all that I have heard was dissatisfaction of head-office control for quite a while already. The employees take the brunt of the customer beefs and they can't change policy but get blamed for it.

Customers are only loyal to a business that responds to their needs and provides them at the right price, quality and especially with the right attitude.

[DogPatch]

Wilagro...... There was a big drop from the $1200/T Phosphate and Potash a couple of years ago. Most dealers had filled up because of feared shortages and then boom the price dropped about 1/2. Glyphosates went from $10 to less than $3/L along with most other chemicals. How did the retailers with large inventories handle that? Aren't some of them owned and operated by Agrium now?

[wilagro]

DogPatch: From personal experience...in the event of an overstock or a sharp price reduction...many but definitely not all will underwrite at least a half if not more of a negotiated quantity if you talk to their reps. Sometimes you have to really beg and some times threaten to switch suppliers or products before they will bend. It depends on what product is involved. The wholesaler wants to sell product too. He doesn't make money if it sits in the warehouse.