Producer Marketing Program

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Cooperative Producers Inc. Producer Marketing Program (PMP)

What is the PMP?

A fee-based marketing program offered to producers by CPI.  The producer works with an advisor to follow a marketing plan specific to the producer’s operation.  Specific recommendations are made using a combination of flat pricing (cash and forward contracts) option based cash contracts (Put/Cash contracts, Guaranteed Minimum Price (GMP) contracts, Minimum/Maximum contracts, Premium Offer contracts), Accumulator Contracts and DRC Contracts.  The producer makes the decision whether or not the recommendations fit in with their specific operation.  Recommendations are not made on where prices will be in the future but are based on managing risk for the producer’s cash bushels.

Main points of the PMP:

A.     Marketing advice through a variety of communication avenues.  This includes one-on-one meetings, periodic telephone calls, daily e-mails, a weekly newsletter, and other public meetings.

B.     A written marketing plan is made for each individual operation.  This includes a pre-harvest and post-harvest marketing plan.  The market plan includes a time frame for marketing goals to be completed in order to assist in taking marketing steps through the year.

C.    A worksheet is available to assist in knowing breakeven price and also what price is needed to reach a profit goal.

D.    A software program is used to track marketing strategies used or under consideration and the corresponding average price.

E.     The main goal is to consistently achieve an above average price while limiting price risk.

To learn more about the PMP program contact Alan Kahle or Paul Phelps at (402) 463-5148 or (800) 355-2710.