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Marketing

Commodities, Pricing and Marketing

Cartoon of a stick man. He says to another man, "Sometimes I feel like a commodity."As I drive down Indiana and Ohio highways, I see acres of corn and soybeans. All the farmers are doing their best to get the most productivity out of their fields. They all strive to be the most productive and deliver a consistent product for the same price. It works for commodities. Corn, soybeans, pork, beef, crude oil, steel are all commodities that require consistent quality, sent to market in the most efficient way. There isn’t much negotiation on price. The only way to make more money is to take advantage of economies of scale.