The 2018 Non-GMO Sourcebook

NON-GMO MARKET NEWS

Non-GMO soybean processing facilities that service domestic demand

the most surefire way to ob- tain the supply needed at a competitive price. Likewise, growers that can deliver on these fronts can ensure a steady source of demand (and a premium) through forward contracting. Importantly, leveraging forward contracts inherently builds understand- ing of the ins and outs of the marketplace, which will also prove useful in instances where there is still grain in growers’ bins or unmet buy- ing needs. Strong Logistics & Infrastructure Matter While forward contracting should be prioritized, some- times it is unrealistic to expect to get all grain contracted

How to thrive in the non-GMO marketplace B Y R A CH E L S TO R Y A ND K E L L E E J AME S , ME R C A R I S W ith many consumers paying more attention to the quality of their food, as well as where it is coming from, demand has been shift- ing away from conventional grains and towards organic and non- GMO for quite some time. There are profound differences when it comes to buying or selling those grains. Here, we’ll focus on factors that impact businesses that source or sell non-GMO grain.

adapt to market conditions:

sulted in a rapid increase in sup- ply, and even with demand growing steadily, it has caused premiums to decrease from the record highs we saw 3 years ago. While there is very little we can do to impact market dy- namics, we have learned a few things about the non-GMO grain supply chain and how to

How Supply and De- mand Match up With conventional commodity prices trending lower, some U.S. farmers recognized that switching to non-GMO would allow them to lower costs for seed, and possibly increase rev- enue. Combined with favorable growing conditions, this has re-

1

Forward Contracts Make a Difference For buyers that plan to source large volumes, re- quire special grain charac- teristics, or have other tight market specifications, lever- aging a forward contract is

2

CONT INUED ON PAGE 8 6 

8 4 • 2 0 1 8 NON - GMO S OU R C E BOO K