(August 2016) – Technology that makes online grain trading simpler, more secure and more competitive will become available to users of the online grain trading platform igrain under a partnership agreement with NZX Ltd, which owns Profarmer Australia.
The partnership agreement will see some of Profarmer’s market leading technology, including the grain exchange NZX operates, rolled out across the igrain platform. One of the key benefits is automatic matching of bids to offers, which will simplify the transaction process.
“Sellers currently set an indicative price, and they then need to approve sales when bids come in. Through this partnership we’re able to offer growers the alternative option of a streamlined sales process where a bid is automatically accepted when the right price is offered,” says igrain managing director Tom Roberts.
“It’s a quicker, lower-touch approach which means growers will see money in the bank in a shorter time, up to several weeks sooner in some cases.”
Inbuilt payment security means sellers can be confident they’ll be paid for their grain – which will help open up the online grain trading space to new buyers who may not have a track record in direct grower transactions.
“The system enables settlement within seven days and the grower retains title to the grain until payment is made, so it’s a very straightforward and secure way to sell. We also provide insurance for sellers marketing grain ex-farm or into delivered markets. We try to eliminate as much risk for the grower as possible,” Tom says.
Profarmer Australia’s general manager Nathan Cattle says the partnership will make it easier for buyers and sellers to connect directly, creating a more transparent market and ultimately a more vibrant online grain trading environment.
“We’re enabling growers to put up a parcel of grain at a price they want in an open market, so they’ll have access to more potential buyers. And it’s good for buyers too because it will be easier for them to search for and buy grain direct from the grower.
“A robust online market place creates more competition to purchase grain at the farmgate, resulting in increased price transparency and ultimately better returns for growers.”
Growers will also have access to Profarmer’s market insights from within the igrain platform, including bid, offer and trade data, so it will be easier for them to work out the best time to sell and to set the appropriate price for their business.
Tom Roberts says the partnership is exciting news for the Australian grain industry.
“igrain is already well known for our great customer relationships and service. Through this partnership we’re able to focus even more on our customers while enhancing our technical offering to make online trading a safer, more viable and lucrative option for more growers.”