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Michigan | I own a small company and this discussion is very interesting.
With regard to packaging - I understand Ron's idea that there is no need to adjust bag weights just pricing. In bulk this is true. If everyone took seed in bulk it would work. But once a company chooses a way to price (50lb vs 140,000 seed units) they are set that way for a least that year. This is why I see selling by count as a problem and a money maker for the company.
For example:
Variety A - Seed size is 2500/lb - 50lb bag has 125,000 seeds
Variety B - Seed size is 3000/lb - 50lb bag has 150,000 seeds
Assuming 140,000 seed unit are being sold (as most companies seem to do) and the price is $30.00 per 140,000 bean unit
- the price on Variety A is $26.79
- the price on Variety B is $32.14 - this could also be the same variety but a different lot.
This is the main reason bags need to be repackaged in the 140,000 seed unit leading to different weight bags. To me it would be an inventory nightmare either way. Different size bags would be a storage problem. Different priced bags would lead to a lot of pricing confusion.
Hopefully this is a fad that will pass. I think it is definitely a way to differentiate companies and also to squeeze more out of customers. As Dave said we and other companies produce and pay growers (and ourselves) on bushels produced and cleaned. If most varieties (the ones we have do) run over 2,800 seeds/lb than there is a cost advantage there to the company.
I know in most years farmers will get more than 140,000 seeds in a 50lb unit - at least with the varieties we sell. I also know we will continue to sell 50lb units until we are forced to go another way.
As I said before this is only my opinion.
PS - hello NewGuy
Edited by j doc 8/25/2006 10:53
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buying soybean seed by seed count or 50 lb.
