Ask an expert: Creating a marketing plan
Victor Aideyan, Senior Risk Management Consultant with HISGRAIIN Commodities Inc., explains the steps you need to take to create an effective commodity marketing plan.
- Creating a marketing plan is a four-step process -- know your cost of production, know seasonal tendencies, have a selling plan and execute
- Create a benchmark cost of production by adding your invoices and payments, and dividing that by your yield
- Once a benchmark cost of production is established you can make estimated adjustments for the year ahead
- Seasonality acts as a guide to market price trends
- Your selling plan should include a benchmark cost of production, the volume you're comfortable selling, your futures and basis targets, and a gross margin target