Agribusiness Disruptions Pt 1

Agribusiness Disruptions Pt 1

Bob Larson
Bob Larson
I’m Bob Larson. Adapting to and surviving the swift changes at every level of today’s ag supply chain is not easy.

The biggest challenge for producers looking to “keep up,” according to David Parker, Executive Vice President at FLM Harvest, is consolidation.

And, he says, that growth could be the right path for you …

PARKER … “And, it’s about efficiency. It’s not about good or bad. It’s about efficient. So, how can I get more out of my fixed assets, whether I’m a processor or a farmer, or a retailer, whatever the case may be, and one of the best and most efficient ways to do that is to grow and spread those costs over a bigger operation.”

And those costs, Parker says translate at every level …

PARKER … “And it’s true at the farm gate as well. Traditionally, it used to be in the PNW, or frankly any geography, where someone would, quote-unquote, pick up ground, and they’d pick up an 80 here or 100 there. Now, it’s not unusual at all to have that be 1,000, 2,000 acres and significant change.”

Success, Parker say is no accident …

PARKER … “The other thing is that the people that I believe are going to truly be successful are doing this intentionally. I mean, they have a growth plan. I’ve recently had the opportunity to be with a group of producers, big producers, all of them 20,000+ acres, and each of them had a growth plan that would at minimum grow their operation 50% in five years.”

Tune in tomorrow for more on solutions to weathering these disruptions in agribusiness.

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