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Agrimarketing : January February 2012
40 Agri Marketing January/February 2012 concentrating on grain, livestock and cotton markets. This service is com- bined with electronic comments that are published three times per day. A multitude of other services are also provided for farmers, all relating to improving their marketing and risk management. In addition, Brock Associates designs and consults in risk management strategies for some of the nation's largest poultry, pork producers and dairies as well as end users in the food industry. We provide services for turnkey seminars and conferences. I speak at over 40 conferences and conventions per year. Agriculture is clearly one of the most exciting businesses to be engaged in. While other industries are struggling, U.S. agricultural producers are experiencing the best economic times in history. It is important that we all remember that agriculture, like most industries, is cyclical. Bad times don't last forever but unfortunately the good ones don't either. To expect a repeat of 2011 in 2012 we feel is overly optimistic. U.S. grain producers have experienced two significant drops in corn production back to back and while it is certainly possible there could be a third year of poor yields, history would indicate otherwise. Assuming U.S. producers plant 94 to 94.5 million acres of corn this spring and we have a "reasonable" growing season, prices will get back to more normal levels and the insanity of extreme high prices will likely end. Environments like this make risk management an even more important aspect for both producers and buyers of commodities. When everyone becomes comfortable and thinks risk management is not necessary, that is when risk management is the most needed. It does little good to wait for the barn to burn down before buying fire insurance. The opportunities are great right now for everyone in agriculture but it will be important for everyone to watch risk expo- sure.The beef and pork industry, on the other hand, should have an extremely excit- ing year in 2012. Input costs will be down but worldwide demand for protein will continue strong increasing the profit margins for beef and pork producers. Little expansion is taking place and thus the supply and demand should dictate higher prices for meat in 2012 with lower input prices and a very profitable time frame. THE CONTEXT NETWORK by Kathleen Erickson www.contextnet.com The Context Network is expanding rapidly. Context's founding partner Tray Thomas says, "As the industry FOCUS: AG CONSULTING FIRMS/continued from page 39 Brock Leadership | Vision | Strategy The Context Network: providing business management and strategy consulting services to the world's leading agriculture, biotechnology and food companies, government agencies and institutions. Context Network | 4401 Westown Pkwy. | Suite 214 | West Des Moines, IA 50266 | (515) 225-2204 | www.contextnet.com Context Partners: Mike Borel, Mark Holland, Mark Nelson, Blake Sieker and Tray Thomas
Marketing Services Guide 2012