And the nodes connext to whom? Nestle wants to do insets, seeking regen wheat. They go to ADM to source. ADM finds some farmer doing cover crops, calls it regen, ships to nestle. Why does Nestle need ADM? For Trucking? For sourcing? What needs to be true for Nestle to be able to directly contract with one or more farmers, assemble the shippling supply chain, and set long term contracts at a fair price?
I believe that the nodes would connect directly (or more closely) to the buyer. Be that a large corporate like Nestle or a smaller purchasing agent.
The commitment as I see it in the industry today is the buyers say to the ADM’s/CHS’s/Cargills “we have made this commitment to ‘regen’ please define what that means for us based on what already exists on-farm with the lowest possible overhead.” A cynic might say that everyone across that value chain benefits from the availability of plausible deniability or what is left unknown.
In the future, I think that this demand from the consumer will become much more specific and technology enables a farm to feasibly connect to the buyer and prove to them their accommodation of the consumer spec for greater profitability on that crop.
In short, if I were a company who competed based on information asymmetry in agriculture like ADM, CHS, Cargill, etc., I would be pretty concerned with the possibility that I might currently be a rent-seeker who has seen my best days pass me by. What do you think?
And the nodes connext to whom? Nestle wants to do insets, seeking regen wheat. They go to ADM to source. ADM finds some farmer doing cover crops, calls it regen, ships to nestle. Why does Nestle need ADM? For Trucking? For sourcing? What needs to be true for Nestle to be able to directly contract with one or more farmers, assemble the shippling supply chain, and set long term contracts at a fair price?
I believe that the nodes would connect directly (or more closely) to the buyer. Be that a large corporate like Nestle or a smaller purchasing agent.
The commitment as I see it in the industry today is the buyers say to the ADM’s/CHS’s/Cargills “we have made this commitment to ‘regen’ please define what that means for us based on what already exists on-farm with the lowest possible overhead.” A cynic might say that everyone across that value chain benefits from the availability of plausible deniability or what is left unknown.
In the future, I think that this demand from the consumer will become much more specific and technology enables a farm to feasibly connect to the buyer and prove to them their accommodation of the consumer spec for greater profitability on that crop.
In short, if I were a company who competed based on information asymmetry in agriculture like ADM, CHS, Cargill, etc., I would be pretty concerned with the possibility that I might currently be a rent-seeker who has seen my best days pass me by. What do you think?
Exactly. The existing system is more brittle than they realize. Slowly, then all at once.