Premium Markets

[parsley]

Some farmers hope to get a premium price for
their grain, Their grain buyers must also shop for
a premium price if they shells out extra dollars to
the farmer. That's business.

So who can afford to pay a premium price for
food? Not third world countries. Not low income
earners. That much we know.

What specifically does high income food shopper
look for when buying premium food? Freshness.
Taste. Safety. Yes. And an audit trail o food has
never been more in the eater's subconscious!


More and more farmers can show you an audit
trail for the food they grow. And for the Roosevelt
cows ate. And pigs ate.

And companies notice that food is becoming an
important factor in a families' budgets.


And I'll guess that's why Cargill's new president,
Jeff Vassart, said that organic growth "has been
our strategy, it's served us well and it's likely
what we would continue to look at".

Yes he did.

And successful companies like Cargill make it a
point to know what sells. What keeps both them
and their farmer-suppliers in business.

Canada is one of out best markets in the world.
For those who are looking for a premium market
Pars.

[rockpile]

Pars, I hope you don't go into a tailspin, but I pretty
much agree with everything in your message. The
past 4 or 5 topics also speak to this issue one way
or the other. It amazes me that when it comes to
manufacturers/producers only farmers seem to
think that they have the moral right to dictate to
their consuming public what they should want or
need. In my mind, it doesn't matter how sound the
science is around current food production - the
consumer dictates what they will pay money for.
There is no question about how consumers,
especially in our premium markets are more and
more demanding of knowledge on how and what
their food is made of and how it is being produced.
Just look at Alberta grocery giants and animal
confinement policy. What ever happened to "the
customer is always right"? Roll with the times folks.
It doesn't imply going organic, but just being
transparent and accountable.

[hobbyfrmr]

I did not read the article yet. Do you think he
meant the company has been growing
organically, without much external
assistance/investment. Not buying organic grown
grains?
No matter. What always fascinates me, is, as you
described how farmers insist their customer
should take what they get, and.....get this....their
customer is stupid for asking about the safety and
quality of the food they are buying.
I wish I had a nickel for every time I hear a farmer
call his customer, the consumer, stupid.
It's like going to buy a Duramax, but salesman
says " here, buy this Super Duty, basically it's
the same thing, stupid!"

[rkaiser]

Interesting Cargill stuff. JBS has a fast growing natural beef market as well. I guess the farmers will have to follow instead of lead...Again.

[Tucker]

That's what the customers say they want but that's not what the majority of people seem to spend their
food dollar on. Am I supposed to sell my wheat as flour by the bag at farmer's markets? Good luck
marketing half a million bags at the side of a road. Bottom line--some bored housewife who says she
wants 'healthy' food isn't my customer. Cargill, Viterra, JRE, and Bunge are. They seem to be just fine
with what I produce and pay well for it. When their customers start demanding change, they can start
demanding change from me.

As for organics, three pathetic looking kernels per wheat head sure must each pack a whole big load of
nutrients into that organic flour. If we were all organic, the country would starve.

[checking]

I can't keep track of the number of times lately that I've heard "it's all about the money".

If that is the attitude, then things like fairness, and should I tell the customer what I'm really doing says that that is just going to remove the premium you insist is in your market.

This leads me to believe that all your busy work, unless you really enjoy busy work, in accounting, traceability, labeling, grunt work with your products, is a huge waste of time just to level the playing field in income with the conventional.

[parsley]

1. Organics are a premium market. The farmer is
paid a premium. The consumer pays a premium.

2. Only smaller companies used to market
organically. Now, farmgate, farmers' markets,
small niche companies, medium sized companies
plus international conglomerates market organics.

3. If you like the markets you have and prosper
on the prices you get, keep doing what you're
doing. Organics will sell thee products and you
will sell your products.

4. Organic keeps growing, and as we offer more
and more specialty products and grains to
manufacturers and processors, by more and
more growers, the more interest there is in
processing, since steady supplies and large
quantities guarantee viability.

5. Just as diamonds command a premium, their
success influences the selling of all gems. Good
for everyone.

6. There will always be a low end market. Many
farmers will choose to fill that market. Tines and
tones of cheap grain for poor people.

7. High prices mean bills get paid. Everyone who
can pay their bills means a financially healthier
community.

8. Developing an organic industry, growing it,
and servicing it is a choice and a commitment. if
you don't choose to grow organically,ndo what
you choose. Farmers don't all have to marry the
same woman, either.

9. Internationally, organics have buyers who can
afford Canadian organically grown grain; mot just
a domestic market. Cargill has exceptional
international contacts and transportation systems. They show interest in processing organics.
Easy to tuck in a few containers of processed
products. Provides service for organics and
makes a profit while doing so. Win-win.


10. Organics are farmers trying to make a living
to pay the bills. As all farmers try to do. Pars

[parsley]

checking. An audit trail of any product takes
time. and costs money. Consumers are willing to
pay the extra cost of audit trails.

Seedgrowers also use an audit trail. That price is
reflected in the cost a conventional farmer pays
for seed

[wd9]

Premium death perhaps.....

(CNN) -
Townsend Farms is recalling bags of a frozen fruit mix commonly used in
smoothies because they could be contaminated with the hepatitis A virus,
the company said in a statement.

Townsend's Organic Antioxidant Blend is suspected in an outbreak of the
virus that has affected five Western states, according to the U.S. Centers
for Disease Control and Prevention.

Thirty-four people have been infected with hepatitis A, and 11 of them
have been hospitalized as of Monday. Infections have been reported in
Arizona, California, Colorado, Nevada and New Mexico, the CDC website said
Tuesday.



http://www.news4jax.com/health/Frozen-fruit-linked-to-hepatitis-A-
recalled/-/475590/20418346/-/10qbmejz/-/index.html

[wd9]

Love this guy!

Organic Food Causes Autism and Diabetes

While people think of "organic" cultivation techniques as natural
and safe, there are important points we might consider. Most of the
plants used today have only been developed genetically in the last
100 years, and even "heirloom" varieties were bred relatively
recently. There have been no long term studies, and plants
certainly are known to produce a wide suite of toxic compounds.

http://kfolta.blogspot.ca/2013/02/organic-food-causes-autism.html

[wd9]

What the heck, one more. so many to choose from:

http://theprogessivecontrarian.wordpress.com/2013/02/28/hows-the-
safety-of-organic-food-working-out-for-ya/

The anti-GMO crowd constantly points to the lack of long-term
safety studies of foods containing GMOs. They continue with this
meme even though there have been hundreds of studies over the last
16 years attesting to their safety and major scientific and health
organizations have signed off on them. The Big Ignore is the fact
that in that time there hasn’t been one negative health effect on
humans. Not one.

In order to protect themselves from the scourge of GMO foods, many
have extolled the virtues of organic food, touting its safety and
the imaginary idea that a $30 billion/year business is all mom and
pop. But as I noted last year in Should organic foods be labeled,
“May contain E.coli or Salmonella, that trust may be misplaced.

[wd9]

Journalist Michael Miersch reports on the double standard in reporting the organic food
catastrophe in Germany. Since E. coli bacteria infected the supply of food and so
creating Germany’s worst food outbreak and scare in decades, the media have been doing
all sorts of fancy acrobatics to play down this glaring Utopian green dream failure.

Officials now claim the source of the E. coli bacteria is indeed a “plant” in North
Germany. That “plant” of course is an organic vegetable farm.

http://notrickszone.com/2011/06/11/deaths-organic-food-deaths-29-fukushima-0/

[parsley]

It iananlearning experience to visit upscale
food stores. With a purpose and a notepad. I
have. Copenhagen, Toronto. New York City.
Dusseldorf. Amsterdam.

There are several things that stuck with me.

1. Rich people are prepared to pay for their food
budget rising from $20k to $40K per yr if it ia
tasty, fresh and safe. Food is a tiny tiny part of
their budget.

2. Upscale organic food markets are growing.
Supply is the problem.

3 I was a one bag seller Tucker, in my on-farm
market barn, for 12 years. Loved it. Still have
customers who want to order products or stop in.
Because they liked them. Met Sumdumguy! . The most important thing I learned from rumning
a market barn is people tell you what they want
and like, and are willing to order, willing to pay
for, andI LEARNED TO LISTEN. I had a list on
the wall where customers would sign their name
with an IOU note, if they forgot their tourist-
wallets. When I closed the barn, not one person
owed me money. Yes I know, no way to do
business. But it works. I did everythiing
wrong,nand everything worked out right. Pars






3.

[parsley]

wd, you will be able to find all kinds of
businesses, restaurants, processing plants both
conventional and specialty food ,who's doors are
closed. I recall people who died of food
poisoning at weddings. Or went blind from
drinking home brew in the bush at the wedding
dance. Lol It's part if life and business The good
thing is Canadians hear about the Maple Leaf
fiascos and changes are made. In China it's
shoot and shut up. Pars

[checking]

Wd9.

Saw that first article on Bloomberg. It stated that surprise package was also sold to 1200 BC, and Alta. buyers.

That is one hell of a lot different than wasting resources testing for trace triffid in a muffin.