Successful value-enhanced grain production depends on effective partnerships of producers, grain handlers and end-users, according to a speaker who addressed the U.S. Grains Council's Third International Value-Enhanced Grains Conference in Portland, Ore.
Jim Stitzlein of Consolidated Grain and Barge Co. said growers and handlers need to address contingencies that can arise due to weather restraints and be flexible in dealing with partners.
“Conditions can change rapidly due to unforeseen circumstances,” Stitzlein said. “Contracts need to include some flexibility.”
Growers producing value-enhanced grain can increase the dollar value of production acreage by gaining premiums on sales, Stitzlein said. But these premiums are contingent upon a producer's ability to deliver products when they match a user's needs.
Weather conditions can delay planting, reduce or increase yield expectancy, and delay movement of products. But because end-use is often time-sensitive, contracts need to define when, where and how much product is to be delivered.
“Timing shipments to arrive at a foreign destination at the right time is a complex problem,” Stitzlein said. “Buyers and producers need to understand what is expected.”