Residents of large cities rarely think about where the simplest products come from in stores. Of course, everyone understands that someone bakes bread and someone needs to grow potatoes, but it is unlikely that people will think about which stages to go through before quality goods get to the counter. Theoretically, there are several ways: the full cycle, from cultivation to delivery to the final consumer, or a chain of interrelated processes that are involved in different organizations. For example, the purchase of potatoes from the population for subsequent wholesale is just one of the stages, which is a completely independent business process.
How to define the boundaries of a business idea
The appeal of the full cycle lies in the ability to get the largest percentage of profits, and at the same time properly monitor the process, earning an excellent commercial reputation. The minus, perhaps, can be called the huge amount of investment that will be required for such a large-scale project.
To grow ordinary potatoes, you will need land, machinery and fuels and lubricants, fertilizers, healthy seed, irrigation systems, storage rooms and a huge amount of freight transport. At the same time, one should not forget about human resources - even in spite of modern agricultural equipment, you cannot do without working hands.
That is why, for example, the purchase of potatoes from the population in Belarus becomes more accessible for execution in order to deliver the consignment to a wholesale buyer or to sell at retail independently. Narrowed boundaries of responsibility can significantly reduce start-up costs and keep profitability under control.
Agricultural holdings against private traders
Large agricultural enterprises are usually on the first path. The scale allows to reduce the cost of conventional hectare being processed: large wholesale fuel and lubricants at competitive prices, full load of equipment. As a result, it becomes possible to reduce the final cost of production, and private traders are not enthusiastic about such competition.
Nevertheless, the purchase of potatoes from the population continues to be in demand. It is believed that farmers do not abuse mineral fertilizers and pesticides, so their products have other competitive advantages.
Tender Supplies
Small organizations and companies can independently arrange the purchase of necessary consignments of any vegetables from an intermediary or even a producer, creating tenders for deliveries on special exchanges. There are sites on the Internet that specialize in publishing advertisements for the sale of agricultural products. Intermediaries can also make money on this.
Suppose, after concluding a contract for regular deliveries, potatoes are purchased from the population in Orel if it is possible to find a quality product at an affordable price. The work of the intermediary is not so simple, but it is useful: the manufacturer does not have to deal with the organization of transportation, look for transport and pay for fuel, and he can completely devote himself to growing a quality product.
How to issue a party purchased from the population?
So that there are no complaints about accounting, it is necessary to draw up a purchasing act on the purchase of agricultural products from an individual.The company can develop its own form, which must necessarily include information about the parties to the agreement, the name of the company and the seller’s data, the content of the transaction - the name of the goods, quantity and category, if necessary. Also, the transaction date, amount and payment method are included in the act. Documenting the purchase of potatoes from the population is a transaction with an individual, at the conclusion of which the buyer is not a tax agent, therefore, personal income tax is not deductible, and the seller independently deals with the declaration of income from which tax is required to be paid.
Depending on the specific purpose for which agricultural products are purchased, appropriate amendments are made to the form of the procurement act. In this case, the seller is not required to pay VAT, since he is not an individual entrepreneur. But the purchaser, when reselling, calculates VAT in accordance with applicable standards.
Benefits of purchasing potatoes from the population
Small batches of agricultural products from trusted private owners may turn out to be of higher quality than large wholesale, since there is the possibility of a thorough check at the stage of the transaction. Peasants themselves often note that buyers put up certain requirements, and they are quite high. For a businessman engaged in processing or supplying food to restaurants and cafes, one-time purchases of potatoes from the population in the Kursk region are sometimes more profitable than a lengthy contract. It must be remembered that with every week of storage the quality worsens, the cost also changes, and a more flexible scheme is required for a business than the harsh conditions of a long-term contract.
Problems
Agriculture is always associated with certain risks, which can be difficult to foresee and respond quickly. Drought, flood, invasion of wireworms, which can spoil the entire crop. This not only reduces the quality, but can completely nullify all efforts. In this case, not only the producer suffers, because it is impossible to purchase potatoes from the population, if there is simply nothing to buy.
Given the sharp decline in quality, on average, farmers in the region respond promptly, raising prices for products that fit into the required standards. This is a market economy as applied to agriculture, specific risks exist, and we must reckon with them.