Contract Comparison in Specialty Beans

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1997-11-18
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Ginder, Roger
Naik, Amol
Jarboe, Darren
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Proceedings of the Integrated Crop Management Conference
Iowa State University Conferences and Symposia

The Iowa State University Integrated Crop Management Conference is Iowa's premier crop production education event. No other program in Iowa brings together the diverse range of topics, slate of expert presenters and results of the latest University research.

The ICM Conference offers workshops focusing on the latest in crop production technology. Experts from Iowa and surrounding states will provide research updates and results in soil fertility, soil and water management, crop production and pest management.

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Abstract

A major portion of the current U.S. soybean crop moves through the undifferentiated bulk commodity channel. Bulk commodity handling reduces the cost of assembly, storage, transportation, and distribution. The ability to commingle grain with widely varying physical and intrinsic properties allows the substitution of inventory in one location for another and permits the use of infinite variations in size of storage and transportation lots. With commingling of these grains, much of the differentiated value of the soybeans is lost. Until now customers have found the cost trade-offs between a bulk commodity approach and accepting a larger level of variation in specific traits economical. However with improved genetics and smaller (or insignificant) reductions in yields when producing specialty soybean, the benefits from identity preservation may exceed the cost savings from the bulk commodity system for some end uses. Although this commodity system is efficient from a cost per bushel standpoint, it will not persist unless it meets the ultimate users wants and needs as defined by quality, availability, and price.

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