Marketing

[wmoebis]

I was just thinking about grain deliveries and new charges posted on cgc web for different grain companies.

When you are deciding where to market your grain what are the factors you take into account as to where you deliver?
1 Grade
2 loyalty
3 freight costs
4 trucking incentives
5 dockage assessment and charges
6 protein (if applicable)
7 deals on fert and chem
8 delivery opportunity
9 elevation charges
10 storage charges
11 drying charges (if applicable)

Do you haul to elevator that gives a better grade but may take more dockage, is a further haul and has higher elevation that off set the grade benifit, would you still haul there?

Does everyone figure out all these factors ahead of time? I have talked to buyers that say that they are very seldom asked up front about charges for handling etc. they get the grain if they give the best grade the rest doesn't seem to matter.

[Hopperbin]

Isn't the handling charge determined by the CWB? I ask about trucking insentive, check how they check for dockage, check for best grade weigh the grade against a possible higher dockage, of course on time delivery opportunity gets assessed. Drying opportunities and how they charge for drying and how they handle the shrink after drying. As for malt I like to be assured on delivery that it is malt.

[freewheat]

I think the bottom line is the net or
bottom line price offered per unit,
tonne or bushel. If one place is giving
me 13.30 for canola, and another 13.19,
shipping costs to the elevator being
equal, who cares about elevation and
handling charges? That is why guys don't
ask/don't care. Dockage and such? Well
if you get to deal at certain places
long enough, you get to know what to
expect, and they also get to know what
to expect.

[Daylate]

Every company in any given year has more competitive and less competitive commodities. Canola might be stronger for one company in an area than another, but their competitor is better in board grains with the opposite in the following year.

there's not one better than the other but loyalty should work both ways and were in it to make money as much as they are. To encourage good business sellers should always sell to the highest bidder. (all things being equal)

[wmoebis]

Each grain company sets thier own tariffs and they vary a lot. The CGC only reports.

Off the CGC's web site:
A list of maximum tariffs (fees) that licensed grain companies charge for elevating, cleaning, drying and storing grain.

All companies are required to file a schedule of tariffs with the Canadian Grain Commission before the beginning of each crop year and before any changes increases are made during the year.

You can try negotiate a lower charge, these are the maximum they can and will charge, if you don't negotiate.

You can bet that a lot of the big farms are charged a bit less, just to get thier grain going through thier facility. Just like buying fuel or chem, the more you buy the bigger break you get.

[ColevilleH2S]

I sell to the elevator that doesn't make me sit in line for 4 hours to deliver a load. My time is worth more than a 50¢/tonne elevation deference.

[skip]

We try to take your factors into account all of your factors and decide on the best short term profit.

We have also from time to time split up our business so that we have good local competition and have several people chasing our business.

[$short]

Wm is correct. All grain companies set their own handling tariff for board grains. It can change at anytime as well. I bet the "big companies" have different handling charges in different areas depending on the competition they are up against.

Its important to take all the elevation, cleaning, freight and trucking premium costs into account when comparing the cost at each location. Sometimes you can make up for a grade difference when you include all of these factors. Some post a CGC charge in their tariffs as well.

I wonder how many farmers actually look at the different handling rates when delivering board grains?