Farm business expert shares key ways to mitigate Budget challenges
16th January 2025
The chairwoman of the Farm Retail Association (FRA), Emma Mosey, has issued a stark warning about the “catastrophic consequences” of the recently announced Budget. She said that the new measures will decimate the UK’s farming industry and compromise the nation’s food security.
Ms Mosey has also reflected on five key ways in which farm shops and farmers markets can mitigate the challenges of this budget to attempt to come out more profitable than before.
She said: “When it comes to cost-saving measures, time is of the essence. Don’t delay, start to convert your ideas into action. Engage your team on cost-saving measures as soon as possible, hold a cost-saving meeting, and brainstorm ideas for new revenue generation.
“We have recently conducted this at Yolk Farm, and it has resulted in a motivated team and cost saving already. It is great to involve the team so everyone feels like they are on the same side, and we can weather the storm together.”
Diversify and take care of customer relationships
Ms Mosey, who runs award-winning Yolk Farm and Minskip Farm Shop near York, added that if it is possible, farmers and business owners should diversify their products.
“Try adding more local suppliers to extend your offer; the more unique and different, the better. Also focus on direct sales of your own products, which have higher margins, promoting these on your social media platforms and through contacting local press.”
The expert added that building strong customer relationships has never been more important than in the wake of this Budget.
“Offering the best customer service, loyalty schemes, and good communication with your customers will all stand you in really good stead. Repeat business will help to offset increased costs and put you in a stronger position,” she continued.
Optimise operations and be creative
The chairwoman of FRA said that business owners should also undertake a candid review of their business processes to identify areas for cost savings and reductions.
This might include improving efficiency of your inventory management, energy-saving measure or negotiating better deals with suppliers. All of these will slowly start to add up to further cost savings.
“At times like this we all need to get creative and think outside the box. Work with your team to come up with savvy, new ideas that will help.
“Ask yourselves – what can you add to your current offering? What can you change or tweak? Do you have disused space that you could turn into a new offer for customers without much capital expenditure?
“Could you open in the evening to use your hospitality space to the max? By asking these questions, new cost-saving ideas will come to fruition,” Ms Mosey added.
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