Farm supply and grain marketing businesses: A mixed methods investigation of past and intended future strategies

Laurin Spahn,Julia Höhler

doi:10.1177/00307270211053342

Laurin Spahn, Julia Höhler

Open Access

https://doi.org/10.1177/00307270211053342

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Abstract

Based on a media analysis and a manager survey, we investigate past and intended future strategies of farm supply and grain marketing businesses in Germany. Alliances, diversification and organic growth were among the most popular past strategies and, according to the participants, will be in the future. Nevertheless, the trend towards divestment and fewer locations for grain collection will continue. Large, investor-owned firms prefer a combination of capital-intensive strategies, cooperatives and small and medium-sized enterprises plan to adopt fewer strategies. We outline several potential implications and areas for further research.

Highlights

Farm supply and grain marketing businesses play an important role in mediating between agriculture and industry (Gollisch et al, 2018).1 They fulfil two central functions: The supply business, that is, selling agricultural inputs to farmers, and the sales business, that is, purchasing crops from farmers
For the second part of the study, we developed a questionnaire on the basis of the relevant literature and an expert interview with a former manager of an agricultural trading firm
To ensure that the questionnaire was understandable and given answers would be meaningful, the survey was tested with a representative of an agricultural trading firm

Summary

Introduction

Farm supply and grain marketing businesses play an important role in mediating between agriculture and industry (Gollisch et al, 2018). They fulfil two central functions: The supply business, that is, selling agricultural inputs to farmers, and the sales business, that is, purchasing crops from farmers. Farm supply and grain marketing businesses play an important role in mediating between agriculture and industry (Gollisch et al, 2018).. Farm supply and grain marketing businesses play an important role in mediating between agriculture and industry (Gollisch et al, 2018).1 They fulfil two central functions: The supply business, that is, selling agricultural inputs to farmers, and the sales business, that is, purchasing crops from farmers. The environment in which agricultural trading firms operate is currently undergoing major changes (see Batte and Ernst, 2007). A growing body of research recognizes the need to understand possible consequences of structural change within agriculture and the food processing industry for agricultural traders’ strategies (Gollisch et al, 2018; Höhler and Kühl, 2014; Schulze, 2012; Sexton, 2013)

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