Improve your competitiveness
Whether you are responsible for improving the competitiveness of a whole country, or a small grain trading business, Perten Instruments can help you. We have one-man operations as well as government agencies and everything in between as clients, and can present solutions that suit the respective needs.
As grain and oilseed move from being commodities to being specialty goods, the customer demands change. It is no longer enough to determine moisture content and purity. Today’s grain and oilseed users increasingly ask for a product with specified characteristics, and to be able to supply them with what they need, you need to make sure you can separate the grain from the chaff.
Segregation brings benefits
The trick is segregation based on quality. What this means is simply that you grade each load your suppliers deliver, put different qualities in different bins, and sell them separately at different price levels. You will find that this brings several benefits:
· You will be able to supply products with specified characteristics instead of only a bulk commodity
· Your average selling price per weight unit increases
· You will be able to supply a much more consistent product
How to segregate
Often it is easier to describe how to do something than actually making it happen, and although segregation is very easy in theory we appreciate that it's quite complicated even if the 5-step guide below is easy enough.
- Make sure you have enough silos to segregate qualities. How many silos you need is dependent on your specific situation.
- If you don't already know it, find out which quality characteristics your customers are willing to pay for.
- Get the right analytical equipment for grading according to those parameters.
- Pay your suppliers a premium for a higher quality product to give them an incentive to supply you with the grades that you need.
- Test every batch before you accept it, and bin according to quality.
A word of caution: mixing poor quality product with higher quality product to get an average acceptable quality is typically not a good idea. Most of the time you will bring all of your product down to the quality of the poor product. No chain is stronger than its weakest link.