If you consider the way most of our grain is sold currently, there are a lot of inefficiencies.
Common practice is to wait for buyers to advertise their bids for the day and then react to it.
The waiting and reacting behaviour often creates angst because growers are thinking "should I sell today or hold?", "will the price keep going up?", "I wish I sold some grain on that last spike!".
When growers decide to sell, they need to engage buyers. This is often done via phone, email or potentially a cash board.
Bids that are advertised by buyers may be indicative. That means growers need to negotiate to get their real buy price.
Many growers sell into advertised bids on cash boards without any negotiation.
If growers negotiate, they typically enter a verbally binding contract over the phone reliant upon each party making notes and providing an email confirmation which is hopefully correct.
To deliver into the contract, growers transfer title of their grain to the buyer and then wait for payment as an unsecured creditor.
Once paid, growers may then receive additional paperwork from statutory authorities asking them to declare varieties and pay end point royalties, or possibly levies and other grain selling costs.
No wonder many growers find selling grain stressful!
It's hard to manage a multitude of buyers, it's hard to do the diligence before selling to an unknown buyer as an unsecured creditor, and there's lots of potential for human error.
The process is cumbersome and makes it very difficult for sellers of grain to find buyers of grain, and buyers to find sellers.
The result is farming neighbours often sell the same grain on the same day at different prices or are selling to buyers that may not have the highest demand and price for their grain.
Rather than wait for a handful of buyers to publish their price and react to it, why not jump on the front foot and tell all buyers the price you're willing to sell for.
Growers have the power to show the offer side of the market, rather than just relying on the bid for price discovery.
By offering your grain for sale on an independent and secure grain exchange, it gives all buyers the opportunity to try and buy it whilst ensuring youre protected by anonymity and secure settlement.
All you need to worry about is what price you want for your grain. If you are a bit unsure of your sales price, start higher!
- Details: 1800 000 410 and firstname.lastname@example.org