ONTARIO GRAIN FARMER COVER STORY 9 • Non-Corrosive • Highly Compatible • Ready-to-Use Formula • Avoid Clogging & Plugging visit us online: alpinepfl.com | call: 1.844.655.BIOK (2465) YOUR EQUIPMENT’S FAVORITE FERTILIZER SCAN NOW TO LEARN MORE THE INESCAPABLE FACT OF THE U.S. We want to look at all opportunities that are out there, but the U.S. is always going to be our neighbour, and the more balanced we are, the better we’re going to be from a marketing standpoint. It’s nice to believe you could have one big customer that wants all of your products because it means you’re dealing with only one interest. But when that one buyer doesn’t want it anymore, it’s the worst position to be in, and the U.S.-China impasse is a good example of that. From a marketing standpoint, diversifying or having a few more buyers is definitely the preferred option. And the customer who’s closest to you is usually your best marketing partner. If I have someone around the corner who wants to buy grain, they usually have a competitive advantage over someone who’s farther away. And that individual usually has to pay the difference between getting it from “here” to “there”. That’s Marketing 101, where the people who are successful in marketing are the ones who actually have the most product closer to where they need it. As for the Indonesian trade deal, the cost of moving commodities around the world remains a limiting factor. Remember the comments about loading ships in Ontario and topping them up in Montreal. Life would be so much simpler if we could transport soybeans from Ontario to the West Coast cost-effectively. But that isn’t possible with the transportation system currently in place, regardless of how our producers in Ontario might be able to boost soybean production. The other consideration is that I trade in physical grain from farmers and sell it to those who use it, unlike traders or brokers who forecast how prices are expected to react to different market influences. Given what I do, I have faith that there’ll be some positives in the long term from this shifting global trade situation. One of the strengths of Canada is that we’re really good at working and maintaining relationships, and that gives me hope for the future. With the Indonesian trade deal, I question whether it can happen as fast as a year or two; sometimes it can take longer to get those new trade routes established and functioning. But we’re going to benefit in the long run because that sums up what or who we are in this country. Jeff Robinson is the grain merchandiser at Guelph-area Woodrill Farms. The opinions expressed in this article are those of the author. •
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