How to make your own feed without breaking the bank

Single ingredients representative Sylvain Gélinas is quick to admit it: “Before 2020, Sollio Agriculture was not a major player in the market for single ingredients for making feed on the farm.” The tide turned when the network began to invest in this key area of livestock production at the request of its members.

How to get single ingredients to make your own feed

Sollio Agriculture has developed a structure through which it can offer single raw materials at competitive prices directly to farmers. The offer caters to pig and poultry farmers as well as to dairy and beef companies.

“The idea is to provide farmers with a one-stop shop,” says Gélinas. “It has to be easy for them. They want to go to one place and be able to get help immediately, or at least as quickly as possible.”

Gélinas guides farmers through the single ingredients procurement process with the help of agri-advisors from regional agricultural cooperatives and a dedicated purchasing, procurement, and risk management team. The final transaction (billing) still goes through the regional cooperative, as farmers are used to doing this.

Pricing is the key to success

Gélinas works with Sollio & Grains Québec Agriculture coopérative and Sollio Agriculture’s Livestock Production Sector, both of which are responsible for buying ingredients.

As a pan-Canadian business that negotiates thousands of inputs, Sollio Agriculture’s purchasing power is tremendous. This gives the company a considerable advantage when negotiating the price of grain, amino acids, and other single ingredients.

According to Gélinas, competitiveness is key to building trust and long-term business partnerships with farmers. “My goal is to match or beat the market price at least 98 % of the time so that customers can stop shopping around multiple suppliers for their ingredients.”

Buying and receiving single ingredients

Like other players in the single ingredients trade, Sollio Agriculture offers a landed price (including transportation costs) based on shipment volume and farm location. Farmers can also sign a fixed-price or basis contract for several types of ingredients (grain, meal, amino acids), if they wish.

Delivery is flexible and efficient. The procurement team places the orders and arranges for their delivery to the farms. The team also tracks shipments and orders from farmers who have contracts with Sollio Agriculture. Through agreements with carriers, orders can be received anywhere in Québec two or three days after they are placed.

In addition, the network offers technical support to farmers through its cooperatives. Martin Harton, a swine production agri-advisor at Avantis Coopérative, has seen a positive response in the field following Sollio Agriculture’s entry into the single ingredients market. “Farmers are used to sourcing inputs from multiple suppliers,” Harton says. “Having a new player in the market gives them new opportunities and the ability to find added value.”