Start Date

18-11-1997 12:00 AM

Description

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.

DOI

https://doi.org/10.31274/icm-180809-588

Share

COinS
 
Nov 18th, 12:00 AM

Contract Comparison in Specialty Beans

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.

 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.