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Senior Contributor

I take it prices

    will go down at the grocer,based on the idea that there is so much soy and corn related in so many products!

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9 Replies
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Senior Contributor

Re: I take it prices

 I was thinking the same thing. Now that corn is cheaper again, cereal and all those other products that used high priced corn as an whipping boy to raise prices, should just voluntarily lower prices now. Right.  Patrick

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Veteran Advisor

Re: I take it prices

Yep....just like it was a few years back,
Where the cost of the plastic wrapping
Was more than the cost of wheat in a
loaf of bread.

Brings up good point tho, I remember hearing
several times a few months back how
rising commodities prices were blamed for
Higher food costs
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Senior Contributor

Re: I take it prices

All isn't bad in the world. I'll give you an example of transparent pricing. We sell organic stone ground whole wheat flour to several large bakeries in Portland Oregon.
Cost of a 50 lb bag of flour delivered 100 miles to the bakers door: $28.55.
Cost of milling: $8.00
Cost of delivery: $3.00
Our company profit:$2.55
Cost of grain to grower: $15.00
Customers care, just let them know the facts. They really don't know much. We sell about 10,000 lb/ week and growing quite quickly.
It would be great if this were the case all over the country!
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Veteran Advisor

Re: I take it prices

James is there a market (delivery points) for organic wheat and milo in Sw ks? The problem is here organic would mean tillage which means loss of moisture and wind erosion
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Senior Advisor

Re: I take it prices

I've always thought "Organic" would have a better chance if it were produced near a highly populated area. Maybe I'm confusing organic production with the marketing of an organically produced product. I know for one thing, one is useless without the compliment of the other.
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Senior Contributor

Re: I take it prices

Hummingbird Wholesale is a very small company but our annual growth rate is about 25% 10 years in a row.  There are other larger players out there.  There is certainly an opportunity to sell wheat and milo and soybeans into the Organic market in the Midwest.  Organic soybeans are in very high demand and most of them come from Canada due to lack of growers in the USA.  Last year there was approximately $38 billion worth of Organic farm products sold in the USA.  The market share of Organics has risen from 3% of total food sales to 4% of total food sales in just the past 5 years or so.

Organic Valley, based in Wisconsin, but with dairies all over the country, is very active in sourcing feed grains for their dairymen all over the country.

If any of you guys think you can grow Organic Hard Red Spring wheat as well or better than they do in Montana, there is a single customer of ours that uses several million pounds/year.  There is also a shortage of Organic sunflower seeds; most are grown in North Dakota and California and the drought is having an affect on supply.

 

Lots to talk about and lots of opportunities too.  Growers new to Organics will likely have to adjust their thinking about marketing.  There are no subsidies, there are no commodity exchanges, in most cases the end user will know you by name and farm planning will have to encompass multiple years at a time in order to get your crop rotations to pay for themselves.

 

If you want to read the latest news letter, google Hummingbird Wholesale and click on Hummingwords.

 

Have a great day!

 

James

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Veteran Advisor

Re: I take it prices

We have a friend about 20 miles away that
Is doing organic. They said by the time you
Figure everything, it about works out the
Same. The killer is they have to haul everything to Colorado which is 200+ miles
Away. Yes what they get is about double
But production is half. They do wheat and
Soybeans but it is hard with no fertilizer.
Think what your round up beans would
Be like without roundup.
Then the headache getting there. 3 years
of no herb or chemical.....what about
The neighbor or within your own ground.
I understand its all or nothing. Their inspector is a pain....if your equipment has
A oil leak, he writes you up.

Yes, the organic buyers are different, overall
Tho, most don't care, they just want to holler.

Yes I would like sunflowers, but what do
You do with head moths.

You might get lucky with 200# if no fert,
No herb and not able to spray, plus
having to haul so far.
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Senior Contributor

Re: I take it prices

I think that may be some biased information there elcheapo.  Just as in conventional agriculture, all buyers are not the same and all growers are not the same.  Surely there is a source of organic fertilizer around you somewhere.  No chickens being raised or dairy manure? You can also purchase belended fertilizers like Perfect blend.

Our ered wehat growers average about 92% of the conventional growers yields and some of them exceed it.  Black bean growers are at about 74% but get paid more than tewice as much.

I'd attach a couple photos, but I would have to down size thewm before they can be attached to this email.  Maybe I'll do that tomorrow.

 

I buy all our FOB the farm and much of it hauled 350 miles.

 

Have a good one!

 

 

James

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Veteran Advisor

Re: I take it prices

Talked to our organic group. They have
set up a coop, so if you don't have that
Much, you can coop.

They also told me the nrcs. Has a program
That can transition, which would work.
I was wondering about neighbors. I guess
You can us a 25 foot border, so I guess
Go 25 foot all around the field.
I guess problem they said was fertilizer
You can use rock phosphate, they are
Getting tougher on manure from feedlot.

I might have to look into it. The fastest and
easy would be organic grass hay and brine
Have not sprayed or fert for yrs.
Have a 20 AC patch that I have been
Idling, wanted to plant alfalfa for a couple
Years but been too dry.
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