Agreement with Producers

ententeAGREEMENT WITH PRODUCERS

Ceresco representatives are agronomists or technicians members of the company’s Agronomy Department. These specialists meet producers to negotiate production contracts for Ceresco’s Non-GMO Identity Preserved or conventional soy varieties intended for human consumption. In addition, they can negotiate purchase agreements with producers for the production of other varieties required by some of Ceresco’s clients.

The price of soybean is determined based on the type of product, crop quantity, storage, delivery location and shipping timeline. The price varies based on the offer and demand and is comprised of three integral elements, including the term contract, the base price and the premium.

TERM CONTRACT

Soybean is traded on the Chicago Stock Exchange. The Chicago Board of Trade (CBOT) is the reference world market. Soybean price is based on fundamental factors and international techniques.

BASE PRICE

The base price reflects the exchange rate between the American and Canadian dollars. The local offer and demand also influence the base price.

PREMIUM

The variety premium refers to the premium paid for producing a specific variety of soybean. Generally speaking, the premium is adjusted based on the specific care required by each variety. For instance, the more care involved in growing a particular variety, the higher the premium.