However, it's too early to say what all the ramifications will be. Companies can now use genetics to create production to meet the specialized needs of end users, processors or exporters. Growers will increasingly be raising a crop not just for the broad market, but, in many cases, for one individual end user. The buyer may want to minimize marketing exposure, for example, through grower contracts. Those prices may not reoccur anytime in the near future, but some buyers vow not to be exposed to such volatility again.
Different firms have different needs, and management styles vary.
Some end users may want to avoid direct use of exchange-traded futures or options. This may reflect internal management policies, tax considerations or other reasons unrelated to price. There may be a handling intermediary involved, such as a local private or cooperative country elevator. It's also worth reviewing a few points from the growers' perspective. Counterparty credit risk Producers can insure against some risks.