Creating an effective commodity 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.
- Four-step process - cost of production, seasonal tendencies, selling plan and execution
- Create a benchmark cost of production - add invoices and payments and divide by yield
- Seasonality acts as a guide to market price trends
- Selling plan includes - benchmark cost of production, volume, futures and basis targets, and gross margin target