Slideshow for Grain Marketing Workshop

1. Grain Marketing Models
Jean-­‐Guy
Vaillancourt
ACORN
November
2015
www.homesteaorganics.ca

2. Homestead
Organics
• Who
are
we/Who
am
I
• What
is
grain
markeHng?
• What
should
you
consider
when
markeHng
grains?
• Type
of
buyers
• Method
of
selling
• Market
tendency

3. Who
we
are
• Between
OOawa
and
Cornwall
in
Eastern
Ontario
– Started
on
the
family
crop
farm
in
1988
– Split
processing
from
the
crop
producHon
in
1997
• Organic
whole
grain
services
– Storage,
cleaning
for
food
&
feed,
markeHng
• Organic
livestock
feed
– Complete
grain
raHons,
bulk
and
bagged,
thru
dealers
• Organic
farm
supplies
(seed,
supplements,
etc)
• Support,
educaHon,
networking

4. Where
do
I
fit
• I
am
the
grain
trader
for
Homestead
Organics.
• In
charge
of
buying
crops,
quality
assurance
and
negoHaHons.

5. Grain
MarkeHng
How
to:
• Sell
grains
• Search
for
prices
• Find
a
contract
that
suits
your
needs.

6. ConsideraHon
• What
are
you
selling?
• What
is
the
quality
of
your
product?
• When
do
you
want
to
sell
it?
– Cash
flow,
weather,
storage
capacity
• Where
do
you
want
to
sell
it?
• What
are
the
specificaHons
to
meet
for
the
preferred
buyer?
• What
is
your
BACK
UP
PLAN!

7. Method
of
selling
• ContracHng
– Pre-­‐harvest
– Post
harvest
• Spot
price
• InviHng
mulHple
buyers
to
visit
a
group
of
farmer’s
and
talk
about
the
prices
they
will
be
buying
it
for.
• Trading

8. Type
of
buyers
and
learn
how
they
work
• AnalyHcal
• Driver
• Amiable
• Expressive

9. How
to
personally
scan
the
market
for
current
pricing
• Call
mulHple
buyers
asking
for
prices.
• Search
online
• Search
online
for
past
organic
trends
prices
and
expectaHons.
• Talk
with
some
farmer’s
in
the
same
situaHon
as
you
and
talk
about
prices.

10. What
is
best
for
you
• Determine
when
selling
is
best
for
you.
• Do
you
like
rushing
at
the
last
minute
to
try
and
sell
it
at
a
(stable,
beOer,
lower)
price.
• Do
you
need
a
plan
by
planHng
Hme?
• Do
you
need
to
meet
cash
flow
obligaHons?
• Prepare
mulHple
plans
• Do
you
prefer
contracHng
at
a
set
stable
price?
• Do
you
like
speculaHng?
• Understand
the
details
in
the
contract.

11. When
talking
money
• Determine
the
type
of
transacHon.
• Obtain
transportaHon
quotes
if
you
need
to
pay
for
delivery.
• Work
around
the
pick
up
day.
• Payment
method
and
Hmeline
• Make
sure
it
feels
right
to
you.
• Depends
on
the
buyer
(farmer,
trader,
processor)
and
their
margins.

12. What’s
your
general
situaHon
• Buyers
do
not
know
about
you.
– And
you
may
not
know
the
buyers.
• Allow
$20-­‐$70
per
tonne
in
shipping.
– Either
way
–
affects
market
price.
• Know
the
market
pressures
– If
a
local
shortage,
add
$40
as
replacement
cost
– If
local
surplus,
subtract
$40
to
reach
markets.
• Feed
market/infrastructure
to
be
developed.

13. What
to
do
• Beware
of
a
volaHle
market.
• On-­‐farm
storage
is
the
best
strategy.
• Contract
some:
– predictable,
reliable,
profitable,
Hmely
cash
flow.
• Spot
some:
– speculaHve
opportuniHes.
– watch
your
nerves;
sHck
with
your
commitments.
• Choose
your
buyer:
– RelaHonships,
reliability,
compaHbility,
paHence.

14. Grain
MarkeHng
• Any
quesHons?

15. Past
market
trends
from
Homestead
Organics
• Good
way
to
predict
the
future
is
looking
in
the
past.

16. Homestead
past
market
trends

17. Organic
Soybeans
past
trends

18. What’s
to
come
• You
can
never
be
to
sure.
• What
is
coming
up?
• What
seams
to
be
stable?
• What
is
coming
down?
– Many
more
acres
coming
into
organic
producHon.
– Good
organic
produciton
in
eastern
Europe
&
Asia.