Regional marketing proves a real winner for grain producers.

Getting people to ask for help has always been pretty tough.

However, getting people to PAY for help is virtually non-existent (given the current sentiment); unless you have a business model that is really strong on delivering actual outcomes for the client and maximising their spend i.e. more bang for their buck.

Consequently, when starting a new business as an independent professional it is always a joy and a compliment to be approached by people and told that my help is needed.

Of course, the MBA student in me says Aha!  Why are people seeking me out in such a tough market?  What are their unmet needs?

What I am seeing is an increase in the number of grain producers that want to change the way they do business in a deregulated industry; but are completely starved of any information as to how to go about this.

This trend reflects the philosophy of a growing number of grain producers that getting closer to destination markets using (producer-owned) farm-direct business models and vertically-integrated regional marketing techniques, is essential for their continued sustainability.

These grain producers represent a new generation of young agriculturalists that want more than conventional production and grain selling information in order to improve their business development and marketing skills.  Their goal is to increase their downstream investment (beyond the farm gate) in opportunities that lead to their own direct relationships with export customers – not the growing number of mid-market participants offering ‘marketing’ products and (fee for) selling services.

Typically, grain producers will come together as a regional cluster to achieve this goal.  Some groups have already successfully linked to niche export markets and have positioned themselves as the real innovators of the industry.  Some have just started the journey.  Others are watching closely.

It is very exciting to see some of the businesses that are developing.

Whilst information that improves productivity and scale in the paddock will always remain important, the cost of consuming the inputs (and other) required to manage these advanced farming systems on land that is well-above its (variable) productive value is prohibitive for some and many grain producers now see value in other business activities and a better utilisation of their cash and equity position that is more sustainable.

Don’t get me wrong – like any industry, the greater majority just want to grow it and sell it to the next person in the pipeline; but the focus and role of some industry help has to change to meet the emerging needs of others.