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Sanilac Co. Michigan | It's pretty well known you folks consistently grow consistent, high quality oats. By that I mean bright, high test weight oats and you fellas grow a lot of them. I'm guessing here, but I'd imagine you've got input costs for fertilizer and crop protection products, as well as seed and the fixed costs for land, machinery, etc, not too unlike a crop of wheat. Talking to a buyer at The Anderson's, he claims they source the bulk of their oats from you guys due to all the above mentioned qualities.
Again, talking to this buyer, it appears the price, delivered into Toledo is @ $3.00/bu USD. Not sure if this is a 32# or 34# bushel, but whatever. So my question is: how do you fellas make this work financially? I'm thinking these oats have to go by truck or train to a port on Lake Superior, then by freighter to Toledo. Freight has got to be a significant expense, but how much, I can't imagine, though I can't believe it leaves much of a profit when it's said and done.
So, though it apparently does, how do you make this work? And no, don't tell me " we take a little loss on each bushel, but make it up in volume"! Just trying to understand. | |
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Got a question for western Canadian oat growers
