economicsJay Leslie

Organic Grain Marketing 101: Part 1 - Liquidity

economicsJay Leslie
Organic Grain Marketing 101: Part 1 - Liquidity

The substance of grain marketing is the same for all farmers - to generate income. The quality of the decision, to sell today or to wait, ends up having a big impact on the farm’s revenue stream, profitability, future potential, and the owners’ quality of life.

It’s no different for organic compared to conventional grain farms, but there are a few specific considerations to bear in mind. More and more as demand and supplies grow, organic grain markets are behaving like commodity markets, but only in certain cases.

Liquidity is one of the main challenges for organic farm marketers. Compared to conventional markets, there is a small number of buyers and a large number of crops that trade as organic. Small parcels of less mainstream organic food grains can be particularly tough to liquidate at times.

Organic wheat and peas are the most liquid crops in the western Canadian space these days, followed by organic oats, rye and durum. Specialty organic crops tend to follow a ‘boom or bust’ pattern. For example, organic French green lentils and mustard seed are highly sought after and tough to come by right now, whereas organic pinto beans and spelt are relatively difficult to find markets for.

It can be really stressful and time-consuming to try marketing crops when opportunities are non-existent. Fear of not getting paid comes into play, of the market never coming back, and when it does, of panic-selling at the lows and leaving money on the table.

Half of the battle towards managing stress and cash flow in an organic marketing plan is growing the right crop in the first place, i.e. not one that is heading towards over-supply. Second is to regularly communicate with buyers. As a rule of thumb, try to find 2-3 companies expressing an interest in buying the crop before finalizing the decision to plant it.

Jay Leslie was born and raised in the central prairie city of Portage La Prairie. Growing up in the prairies with small-town values helped shape his character into the person he is today. Described as a creative leader, with an extroverted personality, Jay has never been one to shy away from challenge or adventure. After graduating as class valedictorian from Arthur Meighen High School, he went on to study advertising, design and communications at Red River College; graduating in 2006 with a post-diploma in Advanced Graphic Design. After school, Jay cut his teeth working in a small design boutique in Winnipeg’s St. Boniface neighborhood, and gained valuable experience in design and project management. In the winter of 2007, he landed a design position with a world-class company, National Leasing. A position which has allowed him to develop an extremely well-rounded skill set in not only design, but also business and marketing management. Through years of growth and hands-on experience, Jay grew to become Marketing Manager; specializing in business-to-business marketing, targeting multiple industries across Canada. He continues to build his career while also maintaining a design consultancy. A proud Winnipeger, Jay Leslie resides in the heart of Osborne Village with his girlfriend and their rabbit, Buns. In the spare time Jay has, he lives to snowboard, loves to golf, and makes time to stay active. Above all Jay values family and friendship, and gains a sense of pride from the outstanding people in his community.