I posted this in the who does best thread but some of the point I make think show where I am coming from
I would say the one who manages risk the best, could even be the farmer.
In all sectors up and down the chain some will prosper some will fail.
We run a local hay for horses business where we are "the chain" and perhaps get a better idea of each individual risk.
Our biggest risk is running out of product because then the customer rings someone else and we have lost a customer.
When we started we thought the biggest risk would be making good hay as we live in a wet area.
We found there is a customer for most grades but he aways knows what that is not us.
Any shortfalls in our own supply both quantity and quality we just buy elsewhere and it has been easy to achieve in practice if not quite as profitable.
This is working quite well but only if we supply the right product to the right customer.
This is what I would like to do with grain but not get involved in the chain.
My skill is in growing not milling malting etc, but I would like to find a way to contact the customer who wants my grain.
This hay , because of our climate, is even more varied in the quantity and quality we produce than our grain, but as stated above we either buy in or store our own for longer up to three years in one instance.
Can you not see that for me risk my money I need a secure supply otherwise I loose everything. All my hardwork is taken over by a competitor with perhaps an inferior product but the ability to deliver.
You on the other hand have presumablly a lower grade product I cannot use but still has a value elsewhere.
You where also wanting me to take more last year when yeilds where good.
What did you do with it? Sell it?
It is less of a challenge to manage this risk with a little thought than it appears?
Locating alternative supplies to maintain my production with an ebay for grain would make life easier.
That is the hard part with the hay locating the bought in element.
I would say the one who manages risk the best, could even be the farmer.
In all sectors up and down the chain some will prosper some will fail.
We run a local hay for horses business where we are "the chain" and perhaps get a better idea of each individual risk.
Our biggest risk is running out of product because then the customer rings someone else and we have lost a customer.
When we started we thought the biggest risk would be making good hay as we live in a wet area.
We found there is a customer for most grades but he aways knows what that is not us.
Any shortfalls in our own supply both quantity and quality we just buy elsewhere and it has been easy to achieve in practice if not quite as profitable.
This is working quite well but only if we supply the right product to the right customer.
This is what I would like to do with grain but not get involved in the chain.
My skill is in growing not milling malting etc, but I would like to find a way to contact the customer who wants my grain.
This hay , because of our climate, is even more varied in the quantity and quality we produce than our grain, but as stated above we either buy in or store our own for longer up to three years in one instance.
Can you not see that for me risk my money I need a secure supply otherwise I loose everything. All my hardwork is taken over by a competitor with perhaps an inferior product but the ability to deliver.
You on the other hand have presumablly a lower grade product I cannot use but still has a value elsewhere.
You where also wanting me to take more last year when yeilds where good.
What did you do with it? Sell it?
It is less of a challenge to manage this risk with a little thought than it appears?
Locating alternative supplies to maintain my production with an ebay for grain would make life easier.
That is the hard part with the hay locating the bought in element.
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