New Grain Buying Guide
AUSTRALIA - Dairy Australia and Grain Trade Australia have launched a new tool to aid dairy producers when buying grain.
21 December 2011
2 minute read
More than 50 per cent of Australian dairy farmers buy some or all of their annual grain requirements (average farm spend of over $100,000) from a grain merchant, a bulk handling company or directly from a grower.
It's important to understand how the contracting system used by the grains industry works, and know how to protect yourself from the quality, supply and price risks.
To address this, Dairy Australia’s Feed2Milk programme has produced a new guide on buying grain with assistance from Grain Trade Australia (GTA).
Download 'A dairy farmer's guide to buying grain'.
This is the first time such a guide has been written from the perspective of a grain buyer (rather than that of a grain seller). The grain buyer guide explains:
- The key elements of a feed grain purchase agreement (called a ‘contract’ in the grain trade and not to be confused with the pricing methods used to buy grain such as spot and forward contracts);
- The steps to taking out a grain contract with a grain seller, your rights and obligations, and how to protect yourself (These processes can also be used to buy fodder and other feeds);
- GTA trading standards for each grain type and what they include;
- GTA’s ‘Contract Confirmation’ form and why it is good to use it to confirm all your grain purchases;
- How to resolve any disputes you may have with a grain seller regarding a contract.
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