|
SW KS, near Dodge City | Because it's a HEADACHE.
Ethanol plant can deal with about 10-20 big suppliers or 500 little ones. Guess which one takes a lot less administrative time/expense to handle?
That's why they go through the coops. They basically pass all of the admin time/expense of dealing with about 500 farmers to the coop.
They call the coop and say, ok, we need 120,000 bushels on Tuesday and 45,000 on Saturday. Coop says OK, we'll be there. Then the coop has to originate the grain and coordinate trucking.
There are definitely some farms that the ethanol plant could call and get that grain like that, but not very many. Think of the time and paperwork it would take for the ethanol plant to originate that grain. That's something the coop's already set up for and specializes in. | |
|
Crooked Co-op managers............How do you give them an incentive......
