The Value of Third-Party Grain Analysis: Your First Step Towards Better Marketing

[MyGrainExchange]

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• Merv Berscheid
• https://insider.mygrainexchange.com/post/the-value-of-third-party-grain-analysis-your-first-step-towards-better-marketing
• 6 days ago, 3 min read

The Value of Third-Party Grain Analysis: Your First Step Towards Better Marketing

When it comes to making smart marketing decisions, knowledge truly is power. For farmers looking to sell their grain at the best possible price, understanding its quality and grade is paramount. Trusting your sample analysis to the party that has a vested interest in purchasing your product is counterintuitive. That's where third-party grain analysis comes into play, serving as the cornerstone of a strategic marketing approach.


In this article, we'll explore the numerous benefits of having your grain analyzed and graded by an independent laboratory.

1. Accurate Grading, Informed Decisions:
When you opt for third-party analysis, you receive an accurate and unbiased assessment of your grain's quality. This information empowers you to make informed decisions about how and where to market your product and what price you'll be willing to take for it. Unlike the verbal assessments offered at some elevators, a formal analysis provides you with a tangible, detailed report that serves as a reliable reference throughout your marketing journey.

2. Commodity-Specific Insights:
Grain analysis goes beyond a simple numbered grade. It delves into specific product attributes like vomitoxin levels for feed, falling numbers for bakers, and oil content for canola. Understanding the unique traits in your bin is essential because they directly impact pricing. By knowing your grain's unique characteristics, you can negotiate better deals, ensuring you receive fair value for your products.
3. USDA vs. CGC Grades:
It's important to note that USDA grades ([url]https://www.ams.usda.gov/grades-standards[/url]) and CGC (Canadian Grain Commission) grades ([url]https://www.grainscanada.gc.ca/en/grain-quality/official-grain-grading-guide/[/url]) are not always interchangeable, especially if your potential buyer is in the United States. Each country has its own set of grading standards, and being aware of these distinctions ensures you accurately represent your product to international buyers.

4. Your Sample, Your Asset:
Once your grain sample has been analyzed, the report becomes your property. Having a physical, documented record of your grain's grade is invaluable. Unlike elevator assessments, which are often verbal and undocumented, your third-party analysis provides tangible proof of your grain's quality. This record becomes a vital tool during negotiations, helping you assert your product's value confidently.

5. Empowered Marketing, Better Returns:
Armed with precise knowledge about your grain's quality, you can tailor your marketing strategies for maximum profitability. You have the freedom to explore various markets, shop around to multiple buyers, negotiate fair prices and select companies who appreciate the true worth of your grain. This level of control over your marketing process translates into better returns on your investment.




In conclusion, investing in third-party grain analysis is not just a step in the marketing process; it's the foundation upon which lucrative deals are built. By knowing your grain's grade, understanding its unique attributes, and having a tangible record of its quality, you position yourself as a knowledgeable and confident seller in the agricultural marketplace.


So, take that first step towards smart marketing – get your grain analyzed, make informed decisions, and reap the rewards of your efforts.?

[Rareearth]

Number 3

[MyGrainExchange]

Rareearth, where do you take your grain for analysis?

[farmboy44]

Well at least your using your own name on here this time and not pretending to be some random farmer pumping your website like you did after farm show this summer Merv.

Your crazy if you think both buyer and seller are going to pay you 1% each for a transaction. There are plenty of brokers who do it for a dollar per tonne. If you think your farmers and buyers will be lining up to give you $7-8/mt each on canola deals you should probably rethink your model.

[Rareearth]

.sgs.

[wmoebis]

The most important part in assessment is collecting and MAINTAINING a representative sample. Whether at the farm or elevator how you take and handle that sample can give you a different grade. Learn proper procedures for sampling, handling that sample and grading then watch to see that elevator does it properly. The sample you send for 3rd party might be way different than what you or the elevator take if not taken and divided properly.

[MyGrainExchange]

Hey farmboy44, This isn't Merv posting nor has Merv ever posted on here so I’m not sure of the context of your above allegation. However, I’m glad you brought up the topic of fee's. That's why we are here, to have healthy open discussions with members of the industry. The better these conversations are and the more feedback we can get, the better we can customize and implement positive changes to our platform. At the end of the day, we want MGX to be a platform that modernizes the grain trading industry while at the same time preserves the delicate nuances of executing a successful trade at an affordable price for both parties.

Firstly, MGX is not a brokering service. Merv’s long history with CGF Brokerage and Consulting have informed the model but online auctions are a more robust marketing tool than fee for service brokers. Brokers are welcome to use our service to leverage better trades for their customers and we have special profile and pricing options to accommodate them. If you’d like to investigate other online grain auctions, Clear Grain Exchange in Australia and GrainDex in the UK are prime examples.

In direct response to your comment about fees, you are correct. We don't expect anyone to line up to pay 7-8$/MT. This is why we have defined caps in place for fees on higher priced commodities. We have also implemented fee discounts that can be activated on both sides when large trades on lower priced commodities take place. We can apply discounts on a graduated scale for Premium users that do a large amount of business on our platform. Think "economies of scale."

When all is said and done, we very much expect the cost of using MGX to be on par to the current costs of brokering grain - although we are not to be compared to a grain brokerage. MGX provides greater and more efficient market access with less leg work and more timely market intelligence. It is simply a tool meant to improve your grain marketing strategy.

It is our goal at MGX to improve these processes and bring transparency to the industry while at the same time creating a marketplace for both buyers and sellers to take control of their businesses. We want to give farmers the ability to receive bids from dozens of buyers simultaneously, as opposed to the usual 3 or 4 local bids that never have to compete in an open transparent market. For those that want to continue trucking their grain to the local elevator to accept whatever grade and correlating price gets attached to the load, they of course are free to do that. Its easy and its how it’s always been done. We get it. But the truth is that farming isn't just a way of life any longer, it is big business and it’s time that the grain industry had the modern marketing tools to match.

At the end of the day, this platform is about 3 simple things. Price discovery, price transparency, and open competition. And lets be honest, in a free market, competition always breeds excellence.

We look forward to any further discussion about any and all related topics or anyone can visit us at mygrainexchange.com for more info.
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[MyGrainExchange]

wmoebis completely agree! taking and Maintaining representative samples throughout the process is paramount and often overlooked or not given the proper care it deserves.

[farmboy44]

The context is a one day old account with zero post history posted on here this summer pretending to be an unaffiliated farmer talking about how amazing your brand new grain marketing website was after seeing it at farm show. They Also made the comment 1% fee is super cheap!

They were promptly called out as being internal to your organization and then they deleted the thread right away. I remember it, it’s immediately what I associated with your brand as soon as I saw this, and im sure others do as well.

Wish you well!

[LEP]

Dozens of potential buyers??

[MyGrainExchange]

LEP indeed! we have over 30 registered and active buyers approved to bid on offers. The list is growing daily.
In the name of transparency we will soon be publishing and maintaining a list of all approved buyers.

Now all we need is the market to cooperate a bit and a few farmers to decide they want to sell some grain.

[Landdownunder]

Clear Grain Exchange is great bear in mind the grain is in elevator system, grade is known. A different beat tham My Grain Exchange.

You put a parcel of grain up at X amount $ buyers see your offer either reject or match your offer, conversely buyers put up bids you can choose to sell.

Transaction happens money goes to a third party or clearing house and grain is then transferred to buyer and money transferred to you if money isnt received by clearing house transaction is cancelled. At no time do you know who buyer is.

Most who use it put offers $15 above so buyers know whats there. Sellers can pull offers at any time and reset.