Biomass Market Strategy

Professional brokers and deal makers exist in every ag industry. This is because the strength of a relationship with a farm or processor provides a familiar and trusted business opportunity.  All else equal, buyers and sellers will always choose a trusted resource over a new relationship. Currently in the hemp marketplace, there are many farms with comparable products, how do you differentiate your crop from the rest of the market?  Work with someone who has a strong understanding of the markets, hemp expertise, and a deep book of business.

Utilizing a service for your biomass transactions creates a distinct opportunity, creating focus and bandwidth for you grow your business.  Farmers can focus on yields and crop efficiency, extraction facilities can focus on their sales channels and developing a book of business. Biomass purchases follow an equation, I can pay X for Y – our team matches your needs with multiple offers and help you navigate the unique opportunities and challenges in the market.

“Shipping can be a pain point, as each state has its own laws relating to transport of hemp, so the issue of liability for loss/damage of raw material is a real concern.” – Michel Navedo, Hemp Specialist

The Kush Marketplace team facilitates procurement for processors.  Our team of experts match your specific needs with over 3.5M pounds of biomass across the United States.  To learn more about our sourcing service, please contact our biomass team at (425) 606-7236.  We focus on simple transactions, timely deals, buying strategy, great communication and guaranteeing a transaction at fair market rates.  

Procurement Manager Responsibilities

As a procurement manager, your job is to create a framework that applies to all your biomass purchases to ensure smooth transactions.  To create a supply strategy for a consistent source of raw materials, maximizing value for all parties, while playing the swings in the market.

Tips:

  1. Biomass shortage 2019 – lock up your contracts now before prices rise
  2. Hedge Bets – secure a portion or all of your material for 2019 through contracts

A successful framework for biomass purchasing will clearly define terms.  This agreement is a transparent outline for your transactions to guarantee a pathway forward with smooth deals, and for difficult and unexpected challenges.  Prior to a deal happening, you need to establish clear contract terms which are agreed upon by both buyer and seller. Below are a few recommendations…

  • Description of product
  • Sampling method
  • Testing labs
  • How to address variance in secondary test results
  • Shipping
  • INCO terms
  • Payment Terms
  • Terms for termination of contract
  • Return policies

We look forward to the coming legalization of Hemp and CBD in the United States with the 2018 Farm Bill!  This is the best time to be in the industry in the history of the world. If you are reading this, congratulations, you are already ahead of the curve.  Please reach out to us if we can be of any assistance with your strategy, procurement sales. Hemp legalization is coming, are you ready?

Sincerely,
Michael Gordon
CEO

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