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Conventional hybrids - the future of Ag
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JimmyP
Posted 3/17/2008 18:25 (#336074 - in reply to #336051)
Subject: Re: Conventional hybrids - the future of Ag


Lancaster, OH
I would think it is a combination of both. Seed companies don't make money by stocking one set of genetics in all the multiple trait combinations--conventional, RR, YGCB, YGRW, RR/YGCB, RR/YGRW, RR/YGPL, YGPL--plus all the treatment options--none, P250, P1250--plus package sizes--individual units or mini-bulk. That provides 32 different combinations (only P250 on any RW corn). Then, you have up to 6 different seed sizes. So you could have 192 inventory items on one set of genetics! That doesn't count using the Herculex traits or Liberty Link. You can see how this all spirals up.

The logic is to price a fully traited hybrid plus it's herbicide tolerant counterpart so it's a good deal for the majority of the market and you cut your inventory down to 24 combinations with lots of supply by seed size.

In the end the most farmers get a good deal and the seed company cuts out a tremendous amount of cost of differently traited production acres and inventory management costs.

I understand the view of the farmer so I have expressed the view of the seed company. They don't seem represented here so much. We might not have it the way we want it as farmers but those are some of the facts.
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