Alibaba

[bucket]

http://www.cnbc.com/2017/01/09/alibaba-to-discuss-expansion-plans-with-trump-company-aims-to-create-1-million-us-jobs-over-the-next-5-years.html


Maybe they will come here as well. ....

[blackpowder]

Very very interesting!

[bucket]

I thought so....it has something to do with marketing....right?

[hobbyfrmr]

I thought so....it has something to do with marketing....right?

It has everything to do with marketing. Klause has described some of his efforts selling cleaned bagged grain in containers. Once in small bags on Ebay and the second time I cant remember the trading platform he used.
Alibaba may become the preferred marketing platform for some farms in the future.
I noted a conventional registered seed grower marketing faba beans, sweet clover, fall rye and 4010 silage peas on an organic trade website. I thought that was very smart. Plowdown seed requirements can sometimes get scarce so they are telling the world they have it.

[bucket]

For all the guys cleaning their grain for the grain cos this year.....just think if you could put your grain on this platform and let the enduser do the logistics...set your price and have it available

[hobbyfrmr]

For all the guys cleaning their grain for the grain cos this year.....just think if you could put your grain on this platform and let the enduser do the logistics...set your price and have it available

That is one way to offer out your product for sure. FOB, your farm, or Ex Works, your farm.
Or..... ask Klause for a good international container freight broker and ask them for a quote to Vancouver, Montreal etc.

[bucket]

If this thing catches on in north america .... there are a lot of jobs to be created....

I think there was some questions about alibaba on the comtrax threads.....creating a bonded warehouse to pull from .....


It might help the GTH .....


It might be graincos stuffing containers that could be a new trend.....was almost there in 2008 until bulk ocean freight rates went thru the floor.

A company had made a field container mover.

[farmaholic]

We need to look at all the potential benefits and pitfalls of such a platform.

Contract execution.... some areas of the world unilaterally back out of contracts if it's in their favor.

How do you mitigate risk of not getting paid? A/R insurance? Asking for payment in advance is as risky for the buyer as waiting for payment is for the seller.

What happens if shipment is rejected at destination? What is plan "B"? And I'm sure plan B isn't as lucrative as plan A.

[bucket]

I would think that's been addressed ....alibaba is a large platform....success doesn't come from not being honorable.....

[JDGreen]

Why is it risky to pay for the product when it has been ordered?.. Is it really any different than buying anything else on line that must be paid in full on your credit card prior to shipping??

[farmaholic]

JD... fine if its paid for before shipping, but then the buyer has no recourse if they "think" it doesn't meet specs

....if it isn't paid for in full before delivery then the seller assumes the risk of the buyer not agreeing it meets specs and withholds payment(or balance of payment) or rejects shipment or "negotiates" the price down!!!

To me it is dramatically different than buying "consumer" goods online. Grain seems to have a "it's not what you said it is" contentious issue if the quality isn't ****ing perfect! Or if the market moves against the buyer and cheaper product is available....

I've never done it so maybe shouldn't comment but I can see the potential issues that are possible. I would think most business is done quite seamlessly but a platform of endless buyers and endless sellers without any established "business relationships" could prove to be interesting. And there are likely unscrupulous people on both sides of the transaction.


The comment in this post relates to selling grain online.... what is the "return" policy?

[dmlfarmer]

I also have some ocean front property in Arizona that I am sure many of you agreeing with this thread will be very interested in.

No question Alibaba is big in China and is looking to expand. But it is primarily a B2B online platform and will not provide 1 million new jobs in the US directly.

Consider that Alibaba only employs about 35,000 people now servicing the largest consumer population in the world. And you think by offering services in the US it will hire 1 million more?

Perhaps 1 million US citizens may use the service to make a sale of purchase of product(s), but this will most likely be in support of an already existing business and will likely not be a new job.

Without a doubt it may mean some businesses may expand to meet new opportunities but this is indirect job creation. At the same time, new competition from Chinese accessing the American market through Alibaba will also cause some job losses. But 1 million new jobs is simply propaganda!

[URL="https://www.washingtonpost.com/world/donald-trump-and-alibaba-founder-to-create-1-million-us-jobs-unlikely/2017/01/10/7ca9a224-d6e5-11e6-8505-8e7091d7cd98_story.html?utm_term=.5fbc30fc2746"]https://www.washingtonpost.com/world/donald-trump-and-alibaba-founder-to-create-1-million-us-jobs-unlikely/2017/01/10/7ca9a224-d6e5-11e6-8505-8e7091d7cd98_story.html?utm_term=.5fbc30fc2746[/URL]

[JDGreen]

Bullshit it's different... If I go to Safeways and buy a grocery item and start eating it and don't like it, does anyone refund my money?? Just received a $2500 piece of furniture shipped from Arizona. Didn't come perfect as there is some minor damage that it looks like I will have to live with. No recourse there, paid in full by MasterCard. Ya they say you can make a claim blah blah blah but it isn't worth the hassle. Simply as producers we have come to expect the shaft, and like sheep aimlessly wander around the problem. It really is simple.. Ship according to mutually acceptable grading company (SGS for example) and pay for the product up front no different than any other purchase..

[farmaholic]

Maybe Klaus could chime in and let us know how his experiences went. I could possibly see this sort of thing having some merit with low volume high value niche markets. But large volume bulk commodities? How many tonnes can be loaded in a large sea-can? That being said...nothing wrong with attempting to service those niche markets but I highly doubt that platform/model would replace large volume over seas shipments. Hell, even large volume North American markets could be serviced with bulk rail cars. Not saying it isn't possible....just that I think it will still boil down to "caveat venditor".

In the Safeway example.....you saw it, you felt it you bought it. And if it is truly spoiled or something wrong with it...you would likely get a refund. Not so much if you "just didn't like it".

In the furniture example.....that's the risk you took and if you agreed to the policies set out by the vendor....they are offering an attempt at remediation. How bad would have the product had to have been damaged before you would have considered making a claim or looking for a refund.

I guess I may be satisfied letting someone else take the risk and "I'll be satisfied grumbling and bitching" I'm not getting paid fair value for my product as usual. Lol. Just kidding nothing ventured nothing gained...go for it if you want but I doubt every deal will be a walk in the park.

[zeefarmer]

And who of us wants to do the work involved? Most of the off season talk on here revolves around trips, booze and this year "clean" energy. Random stuff to idly pass the time. Very little real marketing talk, and most gets deterred or derailed. All the cleaning, paperwork, inspections, legwork, etc, etc, etc that comes with value added. I can think of one local neighbour that would do that. Most just want to dump it in a pit, turn the truck around and pick up a cheque in 5 min. Those are typically the same farmers that grow lentils/durum, or canola/wheat, or canola/snow.

Value added is something we as a community have let slip by. Producer cars are a pretty easy first step. We've done them in the past and will do so again in the future. There are other ways to add value to an operation.

I can see trading platforms like Alibaba catching on, especially for smaller farms. The ability to gain a premium will be the only way that the small small grain farmer will be able to survive.