The 2018 Non-GMO Sourcebook

NON-GMO MARKET NEWS

graphic coverage. Mercaris maps out handling facilities nationwide and has found that, for example, the major- ity of non-GMO soybean processing facilities that service U.S. domestic de- mand (rather than export- oriented handling) are concentrated in a few Mid- western states (see map). Buyers that source and process non-GMO soybeans from this region may more easily find local processors, giving them more flexibility to purchase and process large quantities of cheaper non-GMO soybeans. Con- versely, it could behoove an entrepreneurial non-GMO co-packer or manufacturer to open a plant in North

ahead of time. In the ab- sence of a forward contract, organizations with the most efficient infrastructure—or ability to move grain to where it is needed—tend to come out on top. On the supply side, that means being able to deliver at a moment’s notice. With flexibility to deliver on-de- mand, a seller will become more attractive to potential buyers that are still scram- bling to meet their needs and that are willing to pay a premium to do it. On the buy side, this means operating—or having access to—an expanse of han- dling facilities that can under- take many different processes and, ideally, have wide geo-

Dakota, South Dakota, Ne- braska, or Kansas—four of the top-10 non-GMO soy- bean growing states, with strikingly few processing fa- cilities. Micro-regional Influ- ences are Real Mercaris gathers and pub- lishes national and regional prices for non-GMO grain premiums, and has found that, even within regions, there are considerable varia- tions. For example, al- though non-GMO grain markets are somewhat long nationwide, there are geo- graphic pockets where mar- kets are tighter. Some of our recent auctions have re- vealed that in certain states

like North and South Dakota and Illinois, there is insufficient supply to satisfy local demand for non-GMO soybeans—although nation- ally this market is long. Reaching out to these tighter markets can prove strategic and we have seen many good deals come out of these sorts of markets, despite sometimes-increased transportation costs. The overall solution for ensur- ing a market exists for your non- GMO grain, whether buying or selling, is to have a plan in place before the crop year begins. ( This article originally appeared in the July/August 2017 issue of The Organic & Non-GMO Report)

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