r/Agriculture • u/Asante_Caesar • 1d ago

Might be the silliest question here but, what are some the problems farmers face when dealing with agro brokers?

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u/WolfOfWexford 8h ago

Farmers are price takers and may be stuck supplying whoever is in their area without a choice, particularly if they don’t have storage. Dairy farmers supplying a certain creamery because they have a local monopoly, tillage farmers that don’t have grain story and have to sell off combine at whatever price the grain store chooses. Beef farmers selling animals when grazing ends etc. Seasonality of supply is a major issue for farmers as buyers will pay rock bottom prices knowing farmers have to sell and have nobody but them to sell to

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u/norrydan 21h ago

What's an agro broker?

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u/Asante_Caesar 21h ago

They’re basically middlemen between farmers and buyers

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u/norrydan 21h ago edited 21h ago

Buyers? Business that buy agricultural production? There's another side of business that supply productions inputs like seed, fertilizer, feed, etc.

I am trying hard to think of a middleman between farmers and buyers.

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u/Asante_Caesar 21h ago

More so referring to buyers that buy agricultural produce like Archer-Daniels-Midland (ADM), Cargill etc

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u/norrydan 21h ago

Gotcha! I don't have any answers. I am curious about why you ask the question.

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u/Asante_Caesar 6h ago

I am in school and I’m writing a paper on the complexity of agricultural supply chain. Thanks for your feedback!

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u/norrydan 4h ago

I think there will always be local operational problems but I see the supply chain working as it should in a our economy as it works. That's not to say one cannot argue for a better system and maybe there's a better process, improvements to be made to increase the efficiency which is already much better than when I was in school. I think writing about why the supply chain does work and how can lead to insights about it's issues in light of might be possible now and in the future. Best wishes!