06-03-2013, 03:40 PM
Agriculture Commodity Trading
Agriculture Commodity.ppt (Size: 197.5 KB / Downloads: 23)
Understanding Trade Flows
Demand and Supply
Producing and Consuming Months
Business Environment of Producing and Consuming Areas
Organizational ‘Fit’ in the Environment
Understanding demand
What products the consumer buy, in what volume and price range
What characteristics must the product have (composition, quality, packaging)?
What transport and distribution system will deliver the product in the form, cost range, and time frame required?
What processing technology is required to meet these standards?
Understanding the supply
What supplies are needed to serve this market (volume, quality, price)?
What methods of procurement are required to meet these supply requirement?
External environment - supply
What is commodity production in the area?
- Area under crop (A)
- Yield of the crop (Y)
Gross production (P) = A*Y
What is net availability (NP) = P – K
Where K includes:
- on farm consumption
- fresh consumption
- competitors’ purchases
- post harvest losses