Ag procurement development
Hello all, I am just about to start out in the commodity division of a cooperative mostly on the feed side doing purchasing. Wanted to know if even though the group I will be working with has a relatively small footprint, is this still good training to go and become a trader at a trading shop or a larger producer/processor that has a trading team? It seems functionally it is not that different from other procurement roles which from my understanding is training for risk taking roles.
Hopefully someone who knows what the hell they are talking about can answer, but my take is that they have enough volume required or associated to risk to have someone dedicated to the work. If you are handling logistics and have a certain degree of discretion as when to buy, then there doesn't seem to be anything separating you from another procurement guy. Just be aware that to trade you will eventually have to move and you won't necessarily have great training as opposed to an ABCD that have structured merchandising/trainee programs with trader roles that open up at reasonable frequency.
I would definetly agree with thoroughbell except on their point that the shop will not have a great training program compared to an ABCD. While the certainly won't have the same buying power, which is an important thing to consider in this business, there are still great opportunities to learn the business in a more close knight environment. They are also just as lucrative and oftentimes have better, less cutthroat cultures.
That being said, there are plenty of regional shops that will take you on and actually put you in a classroom for the first three months training you for the ins and outs of the trading role. Upon completion they will gradually transition you to the floor.
I am definitely not doing a classroom sort of training. Honestly surprised there are any companies that do this, is that what you did?
I turned this down but had second thoughts after doing so. Can be really interesting if you enjoy the sector.
Unless you’re from a rural area I wouldn’t recommend being an originator at a coop. Literally will just be calling farmers and pushing a few cents for bigger ones. If you like sales and talking to farmers it’s a solid job. If you don’t it’ll suck big time
Given that is where you are starting if I had to design a likely path to trading at a large shop one day then it would be something like procurement at coop -> ddgs/midds/soy hull merchant at a processor -> corn/wheat/beans trader at that same processor -> corn/wheat/bean trader at a trade shop.
It won't be easy though and will require you to do something different than everyone else starting out a couple steps above you. Are you different/better than the average guy starting in your position or the people already starting at a processor?What skill set do you have that others don't? It wont just happen organically. There needs to be something about you that makes others want to keep you close. That is the more important question to answer than where exactly you are starting out.
Appreciate the response, I guess this is the hand I was dealt and just be the best I can be and be prepared to work to move on to the next role.
How I look at it is that your career is a marathon and just like in a marathon if you are the best runner you are going to end up passing people along the way even if they got a 5 minute head start on you. At the end of the day your talent and desire to progress your career is what is going to drive things - not where you started. Put another way - if you are good then you will pass those people starting "ahead" of you in no time at all and the fact that they started at a processor won't keep them ahead of you for long if you are mindful of what you can do to help yourself out.
Best of luck.
Rotterdam has given you an excellent roadmap. It’s absolutely a solid path to follow but I think you can cut some corners. If you’re willing to move to bumbfuck Kansas for work and you have at least a years experience originating, tons of ag companies will be willing to hire you as a merchandiser.
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