The challenge for farmers is they grow a generic high volume commodity that is sold at a daily price based on factors outside a farmers control. Anything a farmer can do to take of this would be a benefit but that means identifying customers, needs/requirements, working on supply chains/logistics and meeting their needs on a 365 day a year basis. You would have to answer the question why this doesn't happen more. It also does not mean removing price or production risk - it means sharing this risk differently.
Way off Errol topic but listened to a real interesting webinar George Morris Center did. The average farmer share of a consumer dollar at the grocery store is 14 % if I remember right. Varies from 50 % for beef/cattle to something very small for cereal based products (under 10 %). Grocery store margins, however, are continually getting squeezed by the entrance of new participants like Wal Mart and soon, Target stores. Grocery stores generally have relatively small margins but they make money on volume/other higher margin non food stuff consumers buy at the store. If you think farming is a tough, buy a local grocery and go head to head with the big guys.
Way off Errol topic but listened to a real interesting webinar George Morris Center did. The average farmer share of a consumer dollar at the grocery store is 14 % if I remember right. Varies from 50 % for beef/cattle to something very small for cereal based products (under 10 %). Grocery store margins, however, are continually getting squeezed by the entrance of new participants like Wal Mart and soon, Target stores. Grocery stores generally have relatively small margins but they make money on volume/other higher margin non food stuff consumers buy at the store. If you think farming is a tough, buy a local grocery and go head to head with the big guys.
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