Identity Preserved Grain – Logistical Overview

Heidi Reichert and Kimberly Vachal

No 374827, Analysis from United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program

Abstract: Is preserving the identity of grain from field to customer an economically viable marketing option? The answer to this question can only be provided by the market, more specifically, the customer you choose to serve within that market. Identity preservation covers a vast array of ‘special packaging’ options that may be offered by sellers or demanded by customers. Identity preservation may be as basic as providing the customer with a guarantee that a product originated from a specified region. On the other end of the spectrum, an identity preserved (IP) marketing arrangement may allow the customer to direct a farmer’s variety selection, agronomic practices and commodity handling, as well as market the final product. In simple terms, identity preservation allows individual buyers to make specific demands of suppliers – a supplier may then, in turn, serve this customer by meeting these demands based on economics and marketing alternatives. The recent heightened interest in IP marketing maybe attributed to several factors: (1) producers seeking means of diversifying or specializing, (2) technological advancements in communication, production, processing and marketing, (3) sophistication of customer demands, (4) low "commodity" grain prices, and (5) refined consumer expectations. This study was designed to be a resource for producers, shippers, and exporters seeking to diversify their markets through IP shipments. Included are examples of markets for IP grains, trends for containerized movements of grain, and general logistical information to provide a base for understanding how one might make a successful container shipment, considering costs, services, and logistical alternatives. One component of this study is a cost analysis and comparison of bulk versus container movements to help individuals interested in shipping by container.

Keywords: Crop Production/Industries; Farm Management; International Relations/Trade; Marketing; Production Economics; Supply Chain (search for similar items in EconPapers)
Pages: 16
Date: 2003-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uamstr:374827

DOI: 10.22004/ag.econ.374827

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