To get ahead in grain marketing, try viewing it as only one method of
collecting revenue from various sources over a meaningful period of time, according to Mike Kvistad, Benson Quinn Commodities, Minneapolis. It's total revenue, including government assistance, off-farm income, as well
as marketing that affect the bottom-line.
However, do pay attention to marketing. It used to be that farm programs limited risk, but that is not the case now, and the revenue stream is more complex. Today, he who does
nothing, loses, said Mike Krueger of Agri-Mark, Fargo.
Kvistad and Krueger, along with Dave Johnson, spring wheat export manager for Cargill, Inc., spoke on grain marketing and exports at the recent Prairie Grains
Conference.
Johnson said that although world production was down in the last year, high carryover stocks in the big five global exporters of Argentina, Australia, the European Union, Canada and the U.S.
will lower domestic demand. Grain production was up this year by 20% within those five, and all except for Australia and Argentina had a large carry in.
Canada increased by 7% in wheat production from 26 million tons
last year to 26.85 million tons this year, said Johnson. Argentina, the United States and Australia also saw increases of 3 million, 6 million and 2 million tons, respectively. Only the EU saw a decrease in production
by 7% from 103 million tons last year to 96 million tons this year. Other countries also saw increased production including China with a 5% increase and India with an 8% increase.
