Farmers and producers of grain products do not always face optimal market conditions, prompting the need to store their grain until market conditions become more conducive to selling. Grain storage and processing solutions help maintain product quality and preserve the product until the producers are ready to sell. Market prices are often determined by a combination of supply and demand, and an influx of product combined with lower demand can temporarily reduce unit prices below cost. Roller Mills in Southern Idaho can help grain producers store grain products in silos that maintain ideal temperatures and air flow.
Storage and Processing Services
Storage providers can store grain products such as corn, wheat, barley, and beans for a fee. Providers like Roller Mills in Southern Idaho keep the grain products safe from deterioration and can also help process raw whole grains. Learn more about us online or in-person. Processing services can include rolling, roasting, grinding, and drying. These processes ensure the grain meets food quality standards and is ready to sell at the right time.
When it is advantageous to produce grain products, but not advantageous to immediately sell those products after production, storing them can prevent waste and lost income. Since grain is a commodity product, producers are participating in a competitive market often unwilling to tolerate premium prices due to a lack of product differentiation. A commodity product’s features and benefits are usually similar or identical regardless of source. Milk and eggs are other examples of commodities.
When market prices are low due to an influx of product, decreased demand, or a combination of the two, producers want to wait to see if average prices will rise. Higher average prices not only mean more income, but can be the difference between sustaining a loss, breaking even, or making a profit. Storing excess product can be more cost effective than selling, particularly during seasonal market fluctuations. While processing services ensure the product is ready for sale, storage services help producers take advantage of ideal market prices. Both sets of services ensure the quality and integrity of the product is maintained, while adding value for the producers.
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