Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Agenda
○ About Mercaris
○ Why Mercaris- challenges in the Organic and Non-GMO
markets in the United States
○ North America...
Market Data Service and Trading Platform for Organic
and Non-GMO agricultural commodities
Who we are…..
WHY
MERCARIS
?
Why the Mercaris data service - lack of
market transparency
In the United States, the market for conventional grains and
o...
Annual acreage
fluctuations
Acres can fluctuate widely year
over year due to growers
entering and exiting these
markets.
E...
Why the Mercaris auctions platform… lack
of price discovery
In the conventional markets, the Chicago Board of Trade
future...
CME Corn Futures
Bid
Ask
$3.70
$3.71
Market value
$3.705
Organic Corn
Bid
Ask
Why Mercaris- consumer demand
Consumers are demanding more Organic and Non-GMO
products and have an increased awareness ab...
Organic as Driver of Food Industry Growth
Source: OTA State of the Industry 2016
Organic Food Sales 2015
1. US $43.3B
2. C...
Why Mercaris- summary
NORTH
AMERICAN
MARKETS
North America Organic Market Size
TBD! - Update in the coming weeks
North American Organic Acres by Major Crop
North American Organic Acres by Major Crop
North American Organic Acres by Major Crop
US Organic Operation Growth
As of April - USDA AMS announced
13% growth from 2015 to 2016, in
certified organic operations...
Is Organic Demand Outpacing Supply?
Annie’s president at expo
west: “Today 4-5% of the US
food market is organic, and I
th...
US
IMPORTS
Short Term Solution: Organic Grain Imports
More than 75% and 22% of US organic soybean and US organic corn
supplies were i...
US Organic SB Imports by Month
January 2017, a record month since reporting began in 2013
US Organic Soybean Importing Countries, past
12 months
Current Market Conditions
Bullish Conditions
○ Late Spring Frost
○ Concerns over NAFTA
Bearish Conditions
● Continued pres...
Organic Grain Prices Ultimately Followed Conventional
Mercaris Organic Grain Index™ fell 2% compared to an increase of 1% ...
MERCARIS
DATA
New Crop Forward Organic Corn Prices at Discount
March 2017
Feed
$437
(-7.1%)
• Organic feed corn prices slightly lower ve...
Organic Soybean Spot Prices Lower, Limited Contracting
March 2017
Feed
$912
(-
5.6%)
• Organic feed SB prices slightly low...
Organic Feed Wheat Prices
March 2017
Feed
$515
(-4.2%)
• Organic feed grade Wheat prices slightly lower versus last year.
Mercaris Data Service
Screenshots, Mercaris Data Service Reports
Raw Data & Analytics
○ Volume weighted average prices
○ S...
○ North American market
prices, supply and demand
analysis
○ Custom organic, non-GMO,
IP industry analysis
○ Organic & Non...
MERCARIS
TRADING
Mercaris Online Trading Platform
1. Matches buyers and growers electronically
2. Secure, centralized location for transact...
○ Find new buyers/sellers;
○ Secure, fast payment;
○ Save time by marketing on-line;
○ No fee to list, US $0.10/bushel onc...
Mercaris Auction System
➢ Set your specifications;
including reserve price;
➢ Auction Records & Invoices
stored on-line
➢ ...
Special Thanks to
Thank You!
Lizzie Ekeberg
Director of Market
Operations
lizzie.ekeberg@mercaris.com
01.651.402.4210
Alex Heilman
Director ...
Bringing Market Intelligence to Organic and Non-GMO Agriculture
Bringing Market Intelligence to Organic and Non-GMO Agriculture
Bringing Market Intelligence to Organic and Non-GMO Agriculture
Upcoming SlideShare
Loading in …5
×

Bringing Market Intelligence to Organic and Non-GMO Agriculture

1,989 views

Published on

Presented by Lizzie Ekeberg Lehnen Alex Heilman

Published in: Food
  • Be the first to comment

Bringing Market Intelligence to Organic and Non-GMO Agriculture

  1. 1. Agenda ○ About Mercaris ○ Why Mercaris- challenges in the Organic and Non-GMO markets in the United States ○ North America Organic Market Size ○ North America Organic Acreage ○ Demand Drivers & US Organic Imports ○ Mercaris Survey Prices ○ Mercaris Data Services ○ Mercaris Auction Platform
  2. 2. Market Data Service and Trading Platform for Organic and Non-GMO agricultural commodities Who we are…..
  3. 3. WHY MERCARIS ?
  4. 4. Why the Mercaris data service - lack of market transparency In the United States, the market for conventional grains and oilseeds is transparent in terms of the availability of information as well as price discovery through the Chicago Board of Trade futures and options market. However, this transparency does not exist in the Organic and Non-GMO markets. Information about acres planted, market size, price trends, and imports are extremely challenging to find for two main reasons...
  5. 5. Annual acreage fluctuations Acres can fluctuate widely year over year due to growers entering and exiting these markets. Extreme Market Competition The specialty grain and oilseeds market is small and highly competitive so participants are reluctant to share information about their trades.
  6. 6. Why the Mercaris auctions platform… lack of price discovery In the conventional markets, the Chicago Board of Trade futures prices serve as a centralized pricing mechanism which is relied upon to accurately value agricultural commodities. There is no such system that exists for the organic and Non-GMO markets.
  7. 7. CME Corn Futures Bid Ask $3.70 $3.71 Market value $3.705 Organic Corn Bid Ask
  8. 8. Why Mercaris- consumer demand Consumers are demanding more Organic and Non-GMO products and have an increased awareness about where their food is coming from as well as its sustainability.
  9. 9. Organic as Driver of Food Industry Growth Source: OTA State of the Industry 2016 Organic Food Sales 2015 1. US $43.3B 2. Canada $3.5B (2013)
  10. 10. Why Mercaris- summary
  11. 11. NORTH AMERICAN MARKETS
  12. 12. North America Organic Market Size TBD! - Update in the coming weeks
  13. 13. North American Organic Acres by Major Crop
  14. 14. North American Organic Acres by Major Crop
  15. 15. North American Organic Acres by Major Crop
  16. 16. US Organic Operation Growth As of April - USDA AMS announced 13% growth from 2015 to 2016, in certified organic operations. Double digit growth trend in US organic sector continues Source: USDA AMS, April 2017
  17. 17. Is Organic Demand Outpacing Supply? Annie’s president at expo west: “Today 4-5% of the US food market is organic, and I think it will ultimately get to 20%” Canada: Organic Food and Beverage Sales 1.7% share of market (source: OTA)Source: USDA
  18. 18. US IMPORTS
  19. 19. Short Term Solution: Organic Grain Imports More than 75% and 22% of US organic soybean and US organic corn supplies were imported in 2016, Jan. 2017 was monthly record
  20. 20. US Organic SB Imports by Month January 2017, a record month since reporting began in 2013
  21. 21. US Organic Soybean Importing Countries, past 12 months
  22. 22. Current Market Conditions Bullish Conditions ○ Late Spring Frost ○ Concerns over NAFTA Bearish Conditions ● Continued pressure from organic imports ● Higher than expected yields in 2016
  23. 23. Organic Grain Prices Ultimately Followed Conventional Mercaris Organic Grain Index™ fell 2% compared to an increase of 1% in the conventional grain market. Both organic corn and soybean (food and feed) prices fell. Since conventional grain prices bottomed last fall, prices have increased in the conventional market by 10%. Conversely, organic grain prices are 5% lower over the same time frame.
  24. 24. MERCARIS DATA
  25. 25. New Crop Forward Organic Corn Prices at Discount March 2017 Feed $437 (-7.1%) • Organic feed corn prices slightly lower versus last year. • Food grade premiums: $504 CAD/MT
  26. 26. Organic Soybean Spot Prices Lower, Limited Contracting March 2017 Feed $912 (- 5.6%) • Organic feed SB prices slightly lower versus last year. • Average food grade prices we have seen March’17 - $1,083 CAD/MT
  27. 27. Organic Feed Wheat Prices March 2017 Feed $515 (-4.2%) • Organic feed grade Wheat prices slightly lower versus last year.
  28. 28. Mercaris Data Service Screenshots, Mercaris Data Service Reports Raw Data & Analytics ○ Volume weighted average prices ○ Spot & Forward ○ Food & Feed ○ US Regional basis ○ Canadian ○ IP vs. Conventional price Tracking ○ Trade Volume reports
  29. 29. ○ North American market prices, supply and demand analysis ○ Custom organic, non-GMO, IP industry analysis ○ Organic & Non-GMO Corn ○ Organic Wheat ○ Organic & Non-GMO Soybeans ○ Organic & Non-GMO SB Meal ○ Organic & Non-GMO Oil Commodity Market Research
  30. 30. MERCARIS TRADING
  31. 31. Mercaris Online Trading Platform 1. Matches buyers and growers electronically 2. Secure, centralized location for transactions 3. Low transaction costs 4. Competitive market prices 5. Fast, secure payment 6. Electronic or via check
  32. 32. ○ Find new buyers/sellers; ○ Secure, fast payment; ○ Save time by marketing on-line; ○ No fee to list, US $0.10/bushel once sold Mercaris Auction Platform
  33. 33. Mercaris Auction System ➢ Set your specifications; including reserve price; ➢ Auction Records & Invoices stored on-line ➢ Track Delivery/Payment Progress right from Account
  34. 34. Special Thanks to
  35. 35. Thank You! Lizzie Ekeberg Director of Market Operations lizzie.ekeberg@mercaris.com 01.651.402.4210 Alex Heilman Director of Sales alex.heilman@mercaris.com 01.347.522.0631

×