How to start grain trading with a foreign company. Grain wholesale business plan

From time immemorial, wheat has been a very important participant in economic and economic relations. This commodity was produced much earlier than oil or coal. We can live without cars, electricity and the Internet, but food is the fundamental good that stands at the very base of the human pyramid of needs, along with warmth and clean water. That is why wheat remains an interesting tool for trading and investing, but first things first.

The price of wheat (ZW) on the stock exchange right now — Live Chart

Wheat on the Exchange - Wheat futures trading

In our country, the physical purchase and sale of wheat is still highly relevant due to the huge variation in prices in different farms. Sometimes, having loaded free transport with purchased grain, the merchant needs to transport it to a distance not exceeding 100 kilometers in order to sell it on the same day and earn 5-10% of the net profit. But, of course, these are special cases, which only in general terms describe the excitement from the grain trade in the southern regions of Russia.

But what about an entrepreneur who does not have the necessary experience in agribusiness and conducting such transactions?

Like most other commodities, wheat can be traded on the stock exchange.

Unfortunately, the situation on domestic sites is not the most rosy. For a long time there were futures for three varieties of wheat with the ticker “ EXW”, which were not in demand among investors. More recently, this situation has been reversed. St. Petersburg Commodity Exchange. After the start of foreign trade securities, the management of the site undertook to promote commodity futures, which are in demand in foreign markets. These included futures for wheat under the ticker " GR", which is 92% correlated with the most liquid wheat futures" SWR”, which is traded on the Chicago Mercantile Exchange (USA).

Both the old "EXW" and the new "GR" are calculated and there is no supply of real wheat for them.

Despite some progress in commodity trading in Russia, to study the mechanics of wheat trading, we will still go to Chicago (SWOT), where the largest trading platform for grain, dairy and other food products is located.

An important fact. In the US, wheat is measured in bushels (1 bushel = 35.2 liters). Minimum lot when trading wheat in Chicago: 5,000 bushels, or 136 tons.

On the Chicago Mercantile Exchange, wheat futures are called Wheat and have a ticker ZW. The volume of one contract is 5 thousand bushels (136.0775 metric tons). This type of product is quoted in US currency (which is quite logical, since it is traded in the US).

The question of the amount of capital arises reasonably.

If you are a novice investor and are going to allocate no more than 300-500 thousand rubles for trading, any forex broker will suit you, providing access to trading a huge number of different tickers for every taste and color. With the broadcast of quotes from Chicago, as a rule, there are no problems, and the investor can freely buy and sell the ones that interest him.

Here the mechanics completely copies Forex trading and is no different from working with currency pairs. Transactions can be carried out through or a similar program.

If the capital approaches $10,000, then you should think about entering the real market.

It is important to remember that in such a situation it is necessary to minimize the risk of hanging money in Cyprus or other offshores, which are usually used by forex brokers. Now it is easy to find brokerage companies that provide direct access to the US Mercantile Exchange.

However, here comes a new obstacle for the investor. It consists in language barrier. Even if the client turns to a broker in the Russian Federation, who will help collect all Required documents, he will still work through a sub-broker and eventually the investor meets with the English-speaking exchange. A specialized program for trading is also used ( Pintrader or something similar). It is important to understand that translation Money will go through the system SWIFT and, in fact, the funds will be held in the United States.

Price of wheat on the stock exchange

Graph of the price of wheat on the exchange for the last year (online)

An important fact. For access to commodity market The US will need to fill out a lot of paperwork English language. To avoid mistakes and oversights, you can contact any of the top three domestic brokers and find out about the conditions for the provision of sub-broker services. In such a situation, they will help you with paperwork and advise on all subtle issues, including taxation.

Wheat futures in Chicago is traded through electronic platform GLOBEX, which allows you to connect to the exchange from anywhere in the world and conduct active trading remotely. Contracts are expired every month, that is, mechanical re-laying must be done 12 times a year. The delivery date is periodically shifted and it is necessary to follow it either through the trading platform, or be guided by the publications of the official website of the Chicago Stock Exchange. In addition to futures, GLOBEX also trades on all varieties of wheat.

Wheat varieties on the exchanges

In the United States itself, several varieties of grain are produced. There are also several classes on the Chicago Stock Exchange:

Hard Red Winter (ticker: HRW)- approximately 45% of the gross mass of grain produced. The main component of baking flour, therefore, has a high liquidity.

HardRedSpring (ticker HRS)- approximately 25% of production. The increased protein level allows this grain to be used when mixed with other varieties to increase this figure.

SoftRedWinter (ticker: SRW)- about 15-25%. High-quality raw materials that are used for the production of top-class flour, from which muffins, biscuits and confectionery. It has the highest liquidity and important macroeconomic importance. It is an advanced wheat futures, which is usually analyzed when trading grains.

Durum- about 3-5%. Flour is used as an important ingredient in making pasta. Extremely rich in gluten.

BlackSeaWheat (ticker: BSW)– Black Sea wheat produced in Russia, Ukraine and Romania. It currently has zero liquidity. In 2012, it was possible to introduce a contract with the possibility of delivery in Novorossiysk, Odessa and other cities in the Black Sea, however, the low trading volume does not allow active participation in the trade in this instrument.

As a result, we come to the conclusion that we will trade exactly the ticker SRW (short code ZW in trading terminals), as the most liquid and popular.

An important fact. Commodity contracts circulating in Chicago can be realized. To do this, a specialized order is submitted through a broker, indicating the place of delivery (elevator in the United States).

How to make money trading wheat

It is important to understand the process of processing and growing grain in order to conduct successful transactions on this instrument. The United States is the world's flagship cereal producer and has only recently lost that position to China and India. Depending on the time of year, Americans divide grain into winter and summer.

Approximately 75% of wheat produced in America is winter varieties.

This grain is sown in autumn so that the first shoots begin in the spring. Simply put, this wheat is winter wheat. In the northern regions of the Great Plains of the United States, the winter is very severe, so wheat is sown there only in the spring, and the harvest is carried out in the summer or autumn, respectively.

Due to the low profitability of wheat farms and the presence of more economically profitable crops such as soybeans and corn, wheat has been losing popularity among farmers in recent times.

A separate factor is the lack of rainfall in the Plain regions, where many farms have switched to less demanding crops. In addition, the emergence of new varieties of corn and soybeans, bred using genetic modifications, forced farmers to use the oldest wheat fields for the cultivation of unpretentious novelties. Similar improvements in the genetic code of wheat are hampered by the peculiarities of its DNA.

In addition, there are many factors such as breeding issues (wheat seeds are not bought every year, but often used from their stocks), politics and macroeconomics. It is necessary to closely monitor the news in US agribusiness and the world grain market.

It is better to trade wheat futures only with the most reliable brokers. One of these is with whom we have been working for many years.

To open a buy deal, we opened a trading platform, chose smallest lot 0.01 and pressed the button BUY:

By the end of the day, the price of wheat on the stock exchange had risen significantly, and our profit was higher. $90:

We decided to close the deal and fix our trading result:

Buying wheat brought us $93,50 arrived:

Regulated in Russia CROFR and offers a huge list of assets in the stock and commodity, currency and other markets.

What affects the price of wheat

First of all, wheat quotes are influenced by such factors as supply and demand. They are already influenced by factors related to the time of year. For example, it is impossible to say what the wheat harvest will be during the sowing season. Although weather forecasts are published regularly, they can be wrong.

Greater certainty appears already when the harvest time comes. It is for this reason that wheat quotes are in constant dynamics. Their price can drop sharply and then rise again.

There is already a definite trend in wheat prices in the CBOT. For example, their value increases during the sowing period and its completion. At this point, the maximum value is reached. This increase in value is driven by uncertainty. After the sowing campaign, if it was successful, the cost of futures may gradually decrease. The next major price fluctuation may occur in the spring. In the first place are the risks associated with frost or drought.

Then, the price of wheat may decline again until the next planting season. And so from year to year. You can catch these fluctuations and make money on it by buying futures at the right time.

However, seasonal factors is not the only aspect that affects the price of wheat. In addition to them, it is worth paying attention to grain reserves. If too much is accumulated, this can cause a decrease in demand and, as a result, the price of wheat.

On the other hand, a situation is possible in which the harvest was insufficient last year. In this case, due to fears of repeating the scenario, the price of wheat is unlikely to decline even after heading. In addition, its reserves are not enough and this will also have a positive impact on demand.

In terms of data to keep an eye on, the Weekly Crop Progress Reports are released on a weekly basis on Mondays. Another report that can affect the price of wheat is the USDA US and World Supply and Demand Report, which comes out every month on the 11th.

Additional factors

They also include a number of fundamental aspects. For example, one of the significant catalysts for fluctuations in the wheat market can be the US dollar, through which the cost of raw materials is quoted.

When the dollar rises, the price of wheat will fall and vice versa, when the dollar falls, the price of wheat will rise.

Another important point- speculative transactions. In this market, as in many others, there are speculators who tend to play on the difference in quotes. Their presence brings additional liquidity to the market and is the reason for the increase in volatility.

• The increase in consumption in the world also has an impact on the cost. The same China, despite the independent provision of domestic demand, is already making import purchases, and the situation may continue to develop in the same direction.

US wheat consumption

More than half of the wheat grown in the United States is exported.

Consumer prices for flour products in America hardly change from market fluctuations in grain prices. However, the demand curve is most closely related to the country's population and taste preferences. In 1878, grain consumption in America was in the region of 100 kg per citizen per year, by 1926 it had dropped to 80 kg, and the lowest figure was recorded in 1972 - less than 50 kg. A similar drop in demand over a hundred years is due to a change in diet towards soy and other substitutes. In addition, the industrial revolution reduced the physical workload, which also contributed. At the moment, consumption has increased slightly and is approximately 59 kg.

What to look out for

Trading wheat requires the trader to be steadfast and savvy in matters of grain production.

It is important to understand what factors will affect the price.

How will the drought affect it, the release of new fertilizers or a scientific breakthrough in breeding? All this a trader must anticipate and understand. Technical analysis also works in a very specific way on seasonal goods. Added to this is the risk of placing assets outside the Russian Federation and subsequent problems with their return. It is necessary to clearly understand the goals of such trading and have a pre-developed plan. There should be a rich experience in working with other tools, including commodity ones. In other cases, please contact Russian market. Despite the absence of a liquid contract for wheat here, it is possible to engage in trading in other commodity assets. Gold, oil and silver have sufficient liquidity and may well satisfy the appetite of a trader who wants to conduct transactions with the "real commodity".

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Intermediary business is an undertaking that does not require significant financial investments.

In fact, a novice intermediary entrepreneur only needs to have good organizational and analytical skills.

The essence of the intermediary business in the field Agriculture It consists in finding profitable offers for the sale of certain goods and finding buyers.

The profit of the entrepreneur will be formed by receiving a commission, the amount of which must be specified in the agency agreement.

A good business idea in a similar field of activity is the resale of grain.

As you know, Russia is one of the world leaders in the production of such products. Every year, millions of tons of grain are exported to other countries.

How to start a grain reselling business

In order to engage in the resale of grain crops and other agricultural products, it is necessary to purchase a car in the secondary market.

This will minimize the time spent on trips to potential sellers. The cost of acquiring personal vehicles will be recouped after the first major transaction.

After the aspiring entrepreneur gets a car, he will need to decide on the type of agricultural products that he will resell.

It can be a grain crop (wheat, corn, etc.), as well as sugar, sunflower seeds, etc. It is also worthwhile to initially draw up a business plan.

After that, it is necessary to monitor prices for the selected product in your region.

An entrepreneur can also look for suppliers of products in neighboring regions, but in this case he will need to focus on large volumes.

Otherwise, the profit will be minimal due to the cost of shipping products. A solution to this problem may be the inclusion of transportation costs in the final cost of a consignment of goods.

Where to buy grain for resale

Where is the best place to buy grain or other agricultural products for resale:

It is desirable for a businessman to cooperate with small farms. As a rule, they do not have conditions for long-term storage of grain, and they sell the grown products at minimum selling prices.

Another option is to buy grain from large collective farms.

After the businessman finds profitable offer for the sale of products, he needs to take a few kilograms of grain for testing.

Grain samples must be taken to the nearest elevator.

This condition cannot be neglected, because resold products must comply with existing agricultural GOSTs.

After checking the grain, you can start looking for a buyer. Today, there are many Internet resources that contain information about large enterprises interested in buying a particular agricultural product.

If the buyer is satisfied with the parameters of the grain that the businessman has found, then he can safely proceed to the execution of the transaction. All its conditions should be described in detail in the agency agreement.

To do this, you need to organize cooperation with an experienced lawyer.

The difference between the cost of buying and selling grain can reach 300-500 rubles per ton. Thus, by reselling 100 tons of products, you can earn the first 30 thousand rubles of profit.

If a businessman manages to carry out at least 3 big deals per month, his profit can reach 100 thousand rubles.

You can get free business consultations in my VK group "New business ideas and plans".

How to start a speculative agribusiness? As in any trade, the grain dealer is the link between farmers and processing companies. The question arises why farmers cannot sell grain on their own? The answer is simple: mills need huge volumes, and contact small farms just unprofitable. This function is taken over by the wholesaler. He buys grain from several dozen private organizations in the summer and accumulates it until the peak price - spring.

Purchase territories - Southern and North Caucasian federal districts, sales territory - other states and northern regions of the country. The intermediary in this matter facilitates the work of many specialized sites-platforms where you can find up-to-date information, prices and buyers.

Of course, before entering the business of reselling grain, it is worth studying the topic, familiarizing yourself with the chemical and physical properties varieties, with methods of storage and proper transportation, so as not to get into trouble and not to buy low-grade grain.

Hangar

A step-by-step instruction for a grain resale business begins with finding an area. The main asset of the reseller will be a hangar for 1000 square meters. Up to 2,000 tons of grain can be stored in such a room. However, the requirements for long-term storage of grain are quite high:

• The room must be well ventilated.
• The hangar must maintain a constant temperature and humidity.
• The hangar should be disinfected periodically.

The method of storage also depends on the type and type of grain. Wheat, rye, barley are stored in bulk. Corn, poppy and elite varieties of grains are stored in canvas bags up to 15 rows separately from the mounds. So if you are going to resell several varieties, when building a hangar, you should also take into account separate storage. For exploration and design work, 3.5-4 million rubles should be allocated for the construction of the foundation and installation.

Organizational moments

The business idea begins to be implemented at the registration stage. It is important to choose the appropriate organizational and legal form. The best option will become an LLC with a simplified taxation system. This makes it possible to enter into contacts with foreign companies and large Russian organizations. The state duty for registering an LLC will cost 4,000 rubles. The OKVED code corresponds to the selected activity - 46.21.1 "Wholesale trade in grain, seeds and animal feed". It is also worth making a seal and opening a bank account. About 160 thousand rubles will be required for all organizational documents, as well as the conclusion of the necessary agreements for the lease of land, checking ventilation, and disinfection.

We buy equipment

One of the advantages of this business is that it does not require special equipment. Enough to buy:

• Truck ("GAZ" or "KamAZ").
• Grain loader.
• Small household equipment.

In addition to working equipment, it is necessary to equip the administrative building with printers, computers, furniture and working communications. All equipment will require about 3,500,000 rubles.

We are looking for staff

For the full functioning of the enterprise, only 6 people will be needed:

• 2 drivers.
• 2 handymen.
• 2 sales managers.

It is noteworthy that a small business selling grain is also seasonal, along with the cultivation of cereals. The hottest time for resellers is summer and the first spring months. There will be a lot of work during this time. For greater staff interest, it is better to establish a bonus system of payment for completed volumes. In order to retain staff throughout the year, you should pay a minimum wage or use people for other work. For example, engage in the resale of other agricultural products. Average monthly fund wages together with deductions will amount to about 170 thousand rubles. An entrepreneur can conduct accounting independently using online programs.

Forecast income

Is it profitable to spend so much money on opening a grain selling business? Definitely beneficial. The cost during the harvest period is 50-70% lower than in winter and spring. However, in order to fill the hangar, it will take about 15,000,000 rubles. If the price rises by a modest 58 percent in the spring, then it is quite possible to earn 25,500,000 rubles. We will clear the proceeds from all expenses for:

• Land lease.
• Wages.
• Utilities.
• Purchasing materials.
• Taxes.
• Unexpected expenses.

On average, all costs per year will require 19,800,000 rubles. Net profit will amount to 5,700,000 rubles. Profitability will be 22%. If the entrepreneur manages to sell grain for best price per year, the profitability can grow up to 60%.

Advantages and disadvantages

Like any other business, it has its pros and cons.

• High yield.
• Economically advantageous situation for working with foreign partners.
• Unoccupied niche.

• Starting a business requires a significant capital investment.
• Speculative business - you can stay in the red at the end of the year.
• natural product loss.

Eventually

To open a business selling grain, it is not enough to be able to establish diplomatic contacts with people. It is necessary to study all the subtleties of growing and storing each of the grain varieties, familiarize yourself with the safe methods of transportation and loading, and understand all the subtleties of the process. In addition, you need to have large initial funds. This business is not for one or two years, investments will pay off in at least 9-10 seasons.

Often, aspiring entrepreneurs who want to start their own business postpone starting a business for a more favorable time, because they do not have start-up capital. In fact, the opinion that it is impossible to open a startup without serious financial investments is wrong. Using the experience of already established entrepreneurs and analyzing the needs of consumers, you can find that the range of ideas for a business with zero start-up capital is quite wide.

Even the most familiar things can suggest an idea for your business - the very land that surrounds us can become a source of income. And at the same time, it is not at all necessary to engage in agricultural work yourself, exhausted.

Despite economic difficulties, Russia is still one of the most advanced countries in the production of various agricultural products. Wheat, corn, sunflower and other grain crops, sugar, rice, rapeseed, etc. - all this is not only actively sold within the country, plying between regions, but also exported. And on the mediation in the sale of crops, you can earn your first million.

What is the benefit of using an intermediary when buying grain and other agricultural products? The fact is that for the buyer, the difference in prices offered by direct producers-farmers and large exporters-traders can be a weighty argument. As a rule, this difference is about 1 ruble per kilogram and, in theory, looks frivolous. However, when the bill of delivered goods goes to hundreds or thousands of tons, the difference already becomes significant and makes buyers look for better options for buying, but this is not as easy as it seems, because the same low quality can be hidden behind a low price.

It is this problem that the intermediary helps to solve - he regularly monitors suppliers and analyzes the quality of their products, which means he knows where it is more profitable to buy, for example, good grain. At the same time, he takes a much lower percentage for intermediary services than large traders - for example, when buying a hundred tons of wheat in the amount of 530,000 rubles, the commission of a specialist who “brought together” the seller and buyer will be 30,000 rubles.

Business without investments: what is needed?

It is noteworthy that in order to start a grain brokerage business, you really do not need to raise start-up capital. All that an entrepreneur who decides to "make money" in this area will need is a phone, information and his own head. In more detail, the required "starter kit" includes:

1. Directory with information about suppliers in your region. It is not at all necessary to immediately begin to explore distant territories - sometimes a good deal can be concluded even at a distance of 50 kilometers.

2.Phone with tariff plan, providing for unlimited calls - the intermediary will have to talk a lot and for a long time.

3. Negotiation skills and persuasion - they can be both innate and acquired. Most comfortable in this business a specialist who already has experience will fit in sales representative, however, at the same time, a person who is naturally sociable and convincing can achieve success here.

4. It will not be superfluous to have a car - it will be much more convenient to travel to suppliers and buyers for face-to-face negotiations and conclusion of transactions by a private car, and not by public transport.

Where to begin?

Before plunging headlong into the negotiation process, the mediator must preparatory work- that is, thoroughly study the market in the region where he plans to work. Using all available reference resources, find out which crops (the easiest to work with) grow in your area, what is the average price of products and which offers are the most profitable. It makes sense for a novice intermediary to bet on small farmers. They are willing to sell products for more low price, because I often do not have premises intended for long-term storage of grown crops. In addition, they are ready to accept cash payments, which is also beneficial and facilitates the calculation. You can also pay attention to large collective farms, but practice shows that it is better to do this when the entrepreneur already has established relationships with buyers. In any case, market monitoring must be carried out regularly so as not to lose sight of the emergence of new players and profitable offers.

In addition, it is necessary to study GOSTs and technical parameters (IDK, gluten, nature, etc.), which make it possible to judge the quality and class of grain crops. Preliminary preparation will save time on the examination of specific product samples.

As for the search for potential buyers and development of their own client base, then businessmen practicing in this area advise using Internet resources. Among the most trusted and high-quality sites, sites such as grainboard.ru and http://zol.ru/ are distinguished. Poor quality grain is usually sold to poultry farms and similar enterprises, to feed mills and elevators. And the products are more High Quality it is best to sell directly to traders if you can reach them - however, in this case supply volumes should be large enough.

Deal conclusion algorithm

Let us now consider a schematic algorithm for the operation of an intermediary on specific example. Let's say we have found a buyer who wants to buy 100 tons of wheat. Your actions:

1. Conclude an agency agreement with the buyer, which clearly states that for the duration of the this document your client makes purchases only through your mediation. This is very important, as it minimizes the risks of various unpleasant situations - for example, that the buyer and seller will come to an agreement and will carry out subsequent deliveries without your participation, or that, in banal terms, you will simply be "thrown" for money. A standard version of the contract can be found on the Internet, and the nuances can be finalized with the help of a legal consultant.
2. Find a farmer who is ready to provide the required amount of production. Find out for what price he is ready to give the grain, negotiate this offer with the buyer.
3. If the buyer is satisfied with the price, you personally go to the farmer in order to take product samples. When taking samples, be careful to choose a little bit of grain from different storage locations - this will reduce the possibility of marriage (many unscrupulous farmers put illiquid assets at the very bottom, covering it from above with better quality grain).
4. Take the samples (2-3 kilograms) to the nearest elevator, where an examination is carried out according to all the necessary parameters. The cost of this service will be 200-300 rubles. If the examination confirms the declared quality of the product, then the deal goes to the finish line - you contact the buyer again and tell him about all the results and details.
5. If the buyer is satisfied with the quality of the products offered, then you call the supplier and arrange a meeting with him so that he and your client sign a sales contract. It is best to arrange such meetings on neutral territory, for example, in roadside cafe near the farm. Such a move will reduce the likelihood of collusion between the supplier and the buyer, since if the buyer knows the contacts and address of the seller, he may be tempted to reduce the price of the next purchase by purchasing the goods directly.

If this is not the first time you have been cooperating with this client and are in a trusting relationship with him, then the following option is possible - you come to the buyer with a sales contract, and he signs it. After that, you go to the supplier, where you yourself conclude an agreement. Together with the second copy of the contract, you take away the invoice for payment from the seller, which you give to the client's accounting department. The accounting department pays the bill, and you get a percentage of the work done. After that, if it was separately indicated in the agency agreement, you control the loading and delivery of grain and the provision of relevant documents (the type of transport used for delivery depends on the volume of the lot and the distance traveled).

There is another option for the final stage of the transaction, however, it is only possible if your buyer is a truly verified client. In this case, when you receive a request to purchase a certain product, you simply find the specified quantity of the appropriate quality and tell your customer how to contact the seller. The signing of the sale and purchase agreement and the shipment of products take place without your participation, and you simply receive the indicated percentage of the transaction.

Legal entity and taxes

If you plan to scale up your business and bring it to the inter-regional level, then you will need to register as a subject entrepreneurial activity. It is best to focus on the format of society with limited liability, since in this case you will have the opportunity to work under a simplified taxation system (the rate for which is 6% from the “income” object and 15% from the “income minus expenses” object). Registration of an LLC will cost you 4,000 rubles and take five days.

Sometimes the ideas of making money are literally under our feet. Take a look around. We live in a country that occupies a leading position in the production of agricultural products. Wheat, sunflower, corn, sugar, rapeseed, rice - all this is sold in huge volumes both domestically and abroad. We propose to consider a business on intermediary services with the resale of grain.

What is the benefit of using an intermediary to buy grain?

Producers and exporters set almost the same price for their agricultural products. The difference is often only 1 ruble. But when it comes to hundreds or even thousands of tons of grain, the difference in the final cost no longer seems so frivolous. This motivates buyers to look for firms with the most profitable option. But not everything is so simple. Low cost may hide poor quality. All these problems just help to solve intermediaries involved in monitoring suppliers and analyzing product quality.

It is the intermediary who knows where it is more profitable to buy good grain. For his services, he takes a percentage, much less than large traders. For example, for 100 tons of wheat worth 530 thousand rubles, the commission is 30,000 rubles.

How to start intermediary grain business?

Being engaged in such activities, investments are practically not needed. Everything you need is in your head. Plus, you will need a phone number and information about suppliers and the quality of their products.

If we take a closer look at this process, then the initial set of intermediary for the resale of grain includes:

• Directory of suppliers from all over the region.
• A phone with a favorable tariff plan, since you will have to talk quite a lot.
• Ability to negotiate and persuade. It can be both an innate quality and an acquired one. Everything depends only on your desire.
• Having a car would be a plus. After all, you will have to travel to meetings with buyers and suppliers. Face-to-face contracts will bring much better results.

How to start a grain reselling business?

The first thing to do is to study the grain market specifically in your region. Find out what crops are grown, what is their average cost and what offers will be the most interesting.

If the intermediary is a beginner, it is better to start with small farmers. They are almost always ready to give up the price, because they do not have the necessary floor space for storing grain in large quantities.

In addition, they often accept payment in cash, which simplifies the payment.

The next suitable option is large collective farms. But it is worth going there when the intermediary already has a certain base of buyers.

It is important to constantly monitor the market in order not to lose sight of new players in this area with better offers.

But the price difference does not always have to be decisive. You should also familiarize yourself with GOSTs and technical parameters of grain products: gluten, IDK, nature, etc. This information will allow you to clearly and clearly define the quality and class of products.

Where to look for clients? The best way to do this is online. There are many websites on this topic.

Do not immediately abandon low-quality grain. Such products are purchased at a lower cost by poultry farms and feed mills. It is better to offer high-quality grain to traders immediately, but in this case, the volumes should be very serious.

Resale of grain: a detailed scheme of the work of an intermediary

Let's look at an example of how you can get rich to an intermediary selling grain. So, you have found a buyer who needs 100 tons of wheat. You will need the following steps:

• Conclude an agreement, which indicates that during the validity period of the document, the client makes purchases only through you. This is very important to eliminate risks such as collusion between the buyer and the seller and the purchase of products without your participation. Standard contract can be downloaded on the Internet and finalized to suit your nuances from a lawyer.
• Find a seller (for example, a farmer) who is willing to provide this volume of production. Specify the final price, discuss it with the buyer.
• If everything suits the latter, you go to the farmer and take grain samples. It is better to choose from different storage locations in order to exclude the detection of marriage after making a purchase.
• Take samples to the elevator, where they conduct an examination. The cost of such a service is from 200 to 300 rubles. If, according to the results of the examination, the grain is of high quality, proceed to final stages deals.
• Inform the buyer about the details of the quality check. If everything suits him, call the supplier and discuss the details of a future meeting.
• At the meeting, both parties in your presence sign a contract of sale. It is better to make appointments on neutral territory so that neither side finds out the contact details of the other and the next time they simply do not “dump” you.
• After paying the invoice, you take a remuneration for the work, control the shipment of grain (if it is indicated in the contract) and the delivery of products to the buyer's address.

There is another plan for reselling the grain. If you have trusting relationship with the buyer, after checking the quality of the products, you can inform him of the seller's contacts, after which the signing and shipment is carried out without your participation. But resort to this method is worth it only when you are really confident in your client.

Working as an intermediary is financially profitable and there are practically no investments

Legal aspects of a business plan for the resale of grain outside the region

If you are planning to expand the boundaries of your business and take it to a new level, it is best to register an LLC for this and choose the simplified tax system (simplified taxation system) as the tax burden.

Such a business is a good start for those who have not yet fully decided which path to choose in agriculture, and who also do not have enough funds for a more serious event. Resale of grain and intermediary services are relatively new activity which is in great demand.

In the following video, you can watch an interview with an entrepreneur who is an intermediary in the grain business.