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KevinM
Posted 10/6/2016 21:05 (#5568109 - in reply to #5566923)
Subject: RE: forget yearly price performance..........



SE IL
white shadow - 10/6/2016 08:57

.........price is non-issue, think BIGGER...............DO NOT use these "origination contracts" because they represent "captive supply". I can't believe how many people all over the country tried these out. If it represents 10 percent of volume needed to run the grinders, 10 percent less they have to "bid" from the grain producers. They have it contracted---supply is "captive". These contract bushels are no different than DP bushels feeding the market.

How did contract pricing turn out for the animal proteins ? ? Independent hog guys are all but extinct, livestock action barns on endangered species list and have you been watching the beef industry price volatility lately------nice. GRAIN can follow and is trying to follow same vertical integration plan. Another 40 years you could have these same field men, offering you $35,000/year for producing grain for them,------they will supply everything-----you be the chore boy. Might be a stretch, never say never. If SEC gives approval to Bayer buying Monsanto---is it really a stretch or reach-----------think about that--------

HOMEWORK------ list all crop seed./chem input manufacturers on a column, then column for fertilizer, then machinery column and then grain companies. Won't be much over four in any column.


Plant manager vs CEO? Which are you? How much time and talent are you willing to invest? I say that if you cannot bring together all facets of business mgmt you are going to be left in the dust. The operations that can do this will survive. Everybody has some parts they like or dislike more than others. But you have to acknowledge your weaknesses and be able to compensate.
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