Maybe you should tell George Bush about your kind heart idea!!
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The new marketing medium would be able to solve other problems which we all have.
A payment protection such as paypal on E-bay could protect us from bad debt.
Optional but better than the experiances with corparate hog barns in another thread.
Advantages for buyers too.
Search as in auto trader sites for canola within 100miles of crushing plant at 7.50.
The risk and speculation in trading would be reduced to the benifit of both parties.
Would Eatmorewheat see these advantages?
Tom you have had much training to achieve your skill in marketing.
But you still have to guess your 05 production you may have sold half your crop you may have sold a quarter I hope not but perhaps it will be your turn for deer crap.
This new way might even help sell the poorer grades.
Spring harvested canola very small amount contamination 5.00
Is a marketing system devised in the 1850s the best we can do today.
Could a system like this even cope with an event like BSE?
Packers would still pay realitic price but everyone would sell less. A real supply demand signal would be sent and farmers could take apropriate action
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Ianben,
Spring Harvested Canola will not be allowed into our domestic crush plants.
I understand the oil quality is recked by the exposure to winter moisture/freeze thaw cycle. This is on top of the biohazard of wildlife exposure.
On Canola sales for 05, we have a plan to buy back through Canola options, to insure our delivery no matter what. We did this in 2002 with very good risk management results through the drought.
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Pillypilsner: re: higher in commodities; or, monopoly giving us strength in commodities, I must respond in the negative. Why? Because all commodities, and especially ag commodities will always decline in price (long term).
The International Monetary Fund calculates that real commodity prices (adjusted for inflation) have declined on average 0.6% per year since 1900. This means that every decade commodity producers have 6 percent less income from the same amount of gross production. So, a farmer, producing commodities, must produce 6 percent more every decade just to stay even. Hence what we see all around us as "get bigger or get out".
Unfortunately, the world doesn't need 6 percent more raw commodities every decade. So, obviously the more marginal producers will be continually squeezed out of business.
How would a monopoly help realize higher prices for commodities when there is a continual oversupply of commodities? Very simply, it can't. Even if a number of natural resource based countries banded together to try to control prices or a least establish a floor, the people with knowledge would find ways to use less of those commodities in their products, leaving the end result for producers the same or worse.
I believe the best approach to being competitive is through one of two ways. The first is to cut costs. This will only work for so long, as many of us have found out. The other is to differentiate our products. (This is not commodity production as the very definiton of a commodity is an undifferentiated substance). This will also likely have a finite life as someone will eventually copy our product and maybe at a lower production cost.
But the ultimate answer is take personal responsibility for our businesses. When we blame others, (foreign subsidies, insane domestic policy, whatever) it keeps us from looking for opportunities. Let's never be afraid to miss in front of a target.
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