Institutionalization, Grading, Market Information, and Contracts

0
0
1727 days ago, 583 views
PowerPoint PPT Presentation
Presentation. Domesticated animals judgingWatermelonsUsed carsGood choices require great informationTwo issues

Presentation Transcript

Slide 1

Institutionalization, Grading, Market Information, and Contracts AG BM 102

Slide 2

Introduction Livestock judging Watermelons Used autos Good choices require great data Two issues – wellspring of data & what does it mean Three interrelated topics Standardization and Grading Market Information Contracts

Slide 3

Grading-the subdivision of a ware into classes, each of which has unmistakable adequacy to a gathering of purchaser

Slide 4

Benefits of a reviewing framework bring down exchange costs enhanced cost flag bring down hazard permits basic stockpiling expands acknowledgment of significant worth contrasts

Slide 5

Benefits of an evaluating framework assigns item as indicated by request - juice versus crisp better market news permits prospects exchanging & other forward contracts widens markets - inaccessible markets - wild ox

Slide 6

Problems with reviewing frameworks subjective may disregard imperative contrasts – generally, protein in drain & cheddar generation disintegration genuineness definition

Slide 7

Example – hamburger grades Eight quality evaluations for meat The measure is the measure of marbling – the higher the fat substance of the meat, the higher the review But imagine a scenario where shoppers need leaner meat.

Slide 8

Example – corn grades 5 grades in light of test weight, dampness content, broken corn and remote material, and harmed parts Grade may influence storability But bolstering worth is generally disconnected to these evaluations since this is dictated by aggregate absorbable supplements and rough protein

Slide 9

Bulgarian Tomato Plant New proprietors purchased old government tomato cannery Wanted to contract with ranchers – the vast majority of whom are recently autonomous agriculturists What goes in contract? Value, Quantity, chemicals, assortment Did exclude quality

Slide 10

Bulgarian Tomato Plant Worried agriculturists would trust processing plant downsized quality to pay ranchers less A honest to goodness concern Incentive to cheat is high But without quality necessity who will create top notch tomatoes? Why spend more to deliver high caliber when you aren't paid for it?

Slide 11

Market Information Grades & principles Cash markets Futures markets Role of government

Slide 12

Market News Public markets disseminate showcase news to expand advertise Lancaster Farming prints it since perusers need it Limit to what advertise news the private part will give Newspapers don't distribute minor markets Internet balances this to some degree

Slide 13

Private exchanges Most dairy cattle deals are private exchanges Not in enthusiasm of packer to disperse costs Congress is attempting to require announcing Minor items an issue Especially an issue since it is hard to try and discover a market Goats, ducks, rabbits, emus, millet

Slide 14

The estimation of data Information key to great choices Need to know what market is paying Need to have the capacity to decipher cost If you need to see the item, news isn't as profitable Two extremes – wheat fates markets – stallions

Slide 15

What is an agreement? An agreement is a lawfully official understanding between two gatherings to accomplish something, e.g., to trade an item with particular qualities at a concurred cost

Slide 16

Introduction Two end focuses – autonomy & proprietorship in the middle of some consent to cooperate These assentions are contracts

Slide 17

Some types of contracting Poultry Grower gives lodging, work a couple of different things Integrator possesses the feathered creatures, gives the encourage settles on the greater part of the administration choices.

Slide 18

Fruit and Vegetables greater administration choices to the cultivator the processor controls assortment planting plan gathering plan showering restrictions

Slide 19

Hogs Driven by innovative advances that permit bigger scale generation Require more noteworthy coordination amongst units and better administration Similar to poultry

Slide 20

Other Contracts Cooperatives - attempt balance advertise power and help accomplish objectives past people SW Vegetables agreeable Tuscarrora Organic producers High-oil corn, etc. used to guarantee supply Corn - settle cost ahead of time Dairy - forward contract on cost

Slide 21

Why contracts? Favorable circumstances to processor coordination of stream of data sources More control of value sustenance wellbeing - pesticides costs - reception of innovation - propels in hereditary qualities sufficient supply can secure edges with information and yield contracts economies of scale haggling power

Slide 22

Why Contracts? Points of interest to producer ensured advertise cost known heretofore specialized help financing all the more haggling force

Slide 23

Things to concede to quality amount value conveyance time and conditions. administration rehearses arrangement of punishments and premiums for beneath or over the predefined quality What happens if edit comes up short?

Slide 24

How would you discover the cost? simple for corn green beans - what do you have to get cultivators? poultry - bartering power critical here pigs – dealing power

Slide 25

Concluding remarks Quality is not programmed Describing item improves exchanges work Grades make showcase news & contracts conceivable Some are processor driven - vegetables, poultry Some are client driven - some dairy contracts – Pizza Hut Some are maker driven - nourish contracts, numerous dairy contracts

SPONSORS