Grain Marketing Consultant

[Digger]

I would like some input from producers of ag commodities as to if you would consider a grain marketing consultant for your business. If so what would you expect from this consultant and what would you be willing to pay?

My philosophy is that producers of ag commodities are in the business of selling crops, not growing them. With that being said consider all the time, attention to detail and money that goes into growing the crop vs how much of the same is afforded the selling/marketing of that same crop. I mean the whole industry (line companies, end-users etc. etc.) not just producers.

Your thoughts and honest opinions would be appreciated.

[TOM4CWB]

Digger;

Being a seed grower, I always am trying to plan what the market might be doing, 3 years into the future.

Spreading production risk to cover off marketing risk is also wise. What I am saying is we try not to put all our eggs in one basket!

Marketing consultants need to have a share in my business... a share of my costs... and not just take my profits.

There are good people around... but I find it difficult to pay someone else to do what I should be doing (marketing) if I am to be forward thinking in marketing...

A few bad decisions can really cost big time... and in the end, the consultant is going to tell you these are your decisions anyway... only you can make them.

Providing useful information can be of real value... do you need a team member to help collect and filter this info for you?

If you are short on time, and don 't enjoy researching info, know someone you can trust to do this for you... then this team member can help!

Don't expect marketing miracles... because prices are driven by chaotic events... most times they cannot be predicted!

[rain]

Digger Tom is right. first you have to know what it is you want. Is the consultant going to do it all or is he going to help in the decision process. The right person can help out a lot, help take the edge off the decision process. Be sure to interview at least two different consultants about the job you want filled though.

[ianben]

Here in UK we are looking at joining grain marketing coop.

They claim to be able to get premium for organised marketing and providing what customer wants when he wants it.

Sound familiar? but it is volerntary. In fact it is by invitation only but that may just be flatery. Claim they only want the better growers who can produce what is required.

Advice on what to grow and what they can sell. Commit tonnage before harvest and choice of pools, harvest sept/dec jan/april may/july or whole season. Full payment 7th month after pool closes ie 7 feb for dec.
Advances available at low interest

Cost approx £2/tonne can$5/tonne all grains traded canola costs more/tonne £2.50

They like total commitment but are allowing a try us and we will prove it.

Thinking of try half our crop and seeing if there claims are true.

[Digger]

I guess what I am looking at is similar in principle to a co-op for some aspects. i.e. selling/buying power through volume.

Also someone who can remove the emotional aspect of grain marketing and provide grain marketing and risk management strategies.

[TOM4CWB]

Digger;

The "emotional aspect of grain marketing" is part of the market.

If we are purely going on economics, then supply, demand, profit and loss on your specific farm... are what need to drive your marketing decisions.

I have said many times, my farm will do well if a little profit can be made on each sale we make.

The trick is knowing WHEN a profit exists, and what risk is involved in making the sale!

Have fun, marketing is certainly an interesting job, you will certainly meet interesting people if you do a good job on searching out a good marketing consultant!

[rain]

Digger where are the consultants your considering based out of?

[Digger]

Rain

This is a project I am considering implementing myself. I have been employed in the grain industry for the past 10 years and I have been developing and researching a business plan for this for the last year and a half.

[TOM4CWB]

Digger;

Good Luck, you are going to need it.

Many good people have tried and lost their shirts trying to help farmers market their grain.

Somehow there is a logic, that marketing info costs next to nothing, everyone should trust a few "experts" in the government who know more than the futures market, and that farmers are too stupid to know, care about marketing, or know how to develop markets themselves.

This has been beaten into our heads for over 50 years... it could well take generations to create a trust between most farmers, and the majority of marketers in western Canada again.

If you want to starve your family, work real hard, and give only good market advice... give it a shot!

[charliep]

I felt that one Tom4cwb.

A weekend of watching curling so I have to use the analogy. Nobody knows how this year will unfold so what you are trying to advice clients how best to position themselves in a world of uncertainty. In the same way the skips are analyzing all the angles/what the other team might do, farm clients have to do the same with markets. Create profit potential with acceptable levels of risk. No one shot makes a game. The same with markets. The idea is to review the sitution, have a plan/act on it, modify when necessary. Your challenge is to be the coach - help develop the plan and modify as necessary, push for commitment/discipline/action when warranted. As with a skip in curling, the consultant never takes the broom out of the skips hand. They call the game. Your clients make the decisions.