Forward contracting

  • Forward contracting

    Posted by Deleted User on February 22, 2021 at 10:18 PM

    I have another question – does anyone know of any examples of food hubs or producer co-ops doing forward contracting with their suppliers as a way of securing supply? We keep talking about it but I would like to review some examples if they’re out there.

    Thanks so much!

    TJ Werther replied 3 years, 10 months ago 2 Members · 1 Reply
  • 1 Reply
  • TJ Werther

    Member
    February 23, 2021 at 8:09 PM

    Ole….. My first thought goes to what aspects or specific contexts, so to speak, are you interested in? As many would know there IS the good, the bad and the ugly of how forward contracting can effect farm operations and how many decisions in the processes involved can help or harm, short and long-term… creep outside of of overshadow identified “local modeling” and support community, local economy etc. in terms of select operations or locales that exemplify… it occurs as more a discussion as to how these objectives would be met and what aspirations and limits to productions would keep activities in line with identified objectives and values etc., beyond financial choices and decision making, yes?

    As an example, the ideas behind and reasons for “forward contracting” , size and amounts identified within the primary constraints and how operations or multiple operations support these opportunities. Say a farm operation receives a request or suggests a specific production specialized for particular need. How does this opportunity “fit” with established scope, balance and potentials around what already is producing, what more would serve the opportunity and how this would land on many levels, timing, costs and deliverables? Or are we talking about presale of productions and meeting demands of broader markets as well..?

    Thank you

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