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Agricultural Marketing Resource Center

Production Inputs

In this section you can describe how you will access raw materials and other production inputs.  Use the points below to help you prepare this section.

1. Production Inputs

  • Describe the amount, type and quality of production inputs needed.
  • Outline the current and future availability and access to these production inputs.
  • Describe the concentration and competitiveness of input suppliers and product/service providers.
  • Describe the production inputs procurement plan.  This includes specific names of key suppliers, the type, quantity of inputs supplied, their background and reliability, the expected credit and delivery policies, and the need for backup suppliers.
  • What is the cost of production inputs (including the input price and price variability due to seasonality, weather variability, etc.)?
  • Describe the extent to which inputs will be contracted or hedged to mitigate risk of price or supply volatility. Identify and describe actual or expected contract arrangements for production inputs.

2. Member Suppliers (for businesses where members/owners are the suppliers of commodity or specialty product inputs).

  • Describe how much of the commodity or specialty product inputs will be supplied by members/owners.  How much supplied by non-members?
  • If a Uniform Marketing Agreement will be used to access supplies from member/owners, describe the provisions.
  • If a special quality grid (or other method) will be used to measure quality, describe it.
  • If special production and handling practices will be used (ie. identify preservation,certification, etc.), describe them and the process for rejecting inputs not meeting specifications.
  • For perishable commodities/products, describe the plan for coordinating timing of the input to processing needs.

 

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