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Smithfield cuts out the "middleman"
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Ethanol insider
Posted 12/30/2016 10:29 (#5732084 - in reply to #5731607)
Subject: Another reason merchandising margins are down


Adams, NE
across the board.

in today's excess supply, the "middleman" charge has not reset to returns on fixed assets for end-user. Hence, the cut out.

Ultimately the farmer benefits as the elevation margins (or carrying charges) are split between end-user and farmer. The split is not always equal and is sometime 100% one way or another.

Maize and Cogdill to provide a service to farmers and their commercials. Too many large cooperatives forgot that the local demand source is also their customer, too. And cut themselves out a long-time ago.
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