there is one large barley grower in northern nsw southern qld that supplies 1 m t direct to international customers each year. They have the scale to supply this quantities. For CUB there is a risk to sourcing direct - sometimes weather means a growers grain doesn’t make the quality. If that is the case then all they may be short in some years and need to go to other growers or to other suppliers.
The risk to the grower is obvious. CUB decides they don’t need the grain a growers produces. or their grain doesn’t make quality and they buy on market to fulfil their contract. Its horses for courses. Manage any forward selling contract I suppose. The same as selling animals direct to coles or woolies. I never have for a number of reasons but others find it a good way to work. The coles buyer has bought mine from the sale yard though. Direct marketing is there but there are many advantages to the existing supply chain and I can’t see the smaller direct deals cutting out GNC to any great extent.
GNC Price at posting:
$4.20 Sentiment: Hold Disclosure: Held
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