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CLI Forward Fundamentals, page-320

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    "Sales Rationale
    In approaching biomass sales, CropLogic employs common cropping strategies including sales to a diversified buyer base. This principle avoids sale of biomass to a single buyer, mitigating default risk.CropLogic has also adopted a forward marketing percentage principle where biomass available for sale or option increases during the cropping cycle as key milestones are met. Under this policy, this Supply Agreement has been limited to less than 30% of total production estimates. More product will be released to market as compliance testing is completed in September." (early Aug Ann)

    Having a marketing background, this is an intelligent strategy because forward sales are usually at a discount to the spot market price.
    The offtake is with a new local processer and it also makes good sense to not put all one's eggs in the one basket as stated above to minimise
    risk.


 
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