The power of a broker

By April 26, 2019Blog

In the dictionary the meaning of a broker is a person who buys and sells goods or assets for others. Where as a reseller is a company or individual that purchases goods or services with the intent of selling them rather than consuming them. This is usually done at a profit but sometimes it results in a loss.

Agfinity is an example of a classic broker as we work to find you the best opportunity and by not taking ownership of the product or paying you for the product. We essentially take what you are looking to move and try and find you the best price or opportunity based on the criteria you are looking for. We work on a fixed fee per a metric ton if we end up helping you trade your grain. We have a large database of buyers we work with that we are able to show your grain to and find you an opportunity that meets your criteria.  

In a recent survey we put out to our customers we got a lot of concern and comments about being connected with resellers. Many people were concerned that if a reseller was able to buy it there must be money being left on the table. This is not always true sometimes these buyers are buying large quantities to go into specific sales and are seeing higher pricing than what you would selling a few loads to the same buyer. Other times these companies have export programs as well that allow them to move grain at premiums. Not only are they able to get good opportunities sometimes they are able to book freight for less as they can contract carriers for more loads and this sometimes allows them to be able to help get you the number you want by essentially grinding the freight or by helping the trucker to book back hauls.

The last kind of buyer we work with is an end user these are buyers that are the end home for your grain. These are buyers that will have a purpose for your grain. An example of these buyers are feedlots and feed mills and anyone who has a use for the grain. These are buyers that we typically book freight for.. Sometimes these are the best options especially if you’re looking for a close option to haul yourself to or when they have a sale going on. But sometimes they are not always the best number. If it goes to a feedlot they sometimes will be tolerant of off spec grain. This is a big help when it comes to moving stuff with higher moisture.

Let us be your first call when it comes to marketing your grain and allow us to show your grain to all the people you already talk to when it comes to marketing. Sometimes your go to buyers might not have the best price at the time. Let us do the work for you and find you the best price!