We found out very early that producer's real benefit was in more than just commodity White Wheat. It was imperative that producers have a process for getting their product further up the marketing chain. Moreover, we believe no one else has also developed a customer base for hard white wheat products that understands its value and represents a demand base. This structure is designed to move producers further up the marketing chain. Plus, this structure will enable us to operate more as a value added business than as a community service that has historically been the case for traditional cooperatives.
Any new venture carries with it certain risks.
There are also risks inherent in the cooperative structure, including continuing qualification for cooperative tax treatment, ability to pay patronage distributions, potential difficulty in raising future capital, and a limited market for it's capital stock. Marketing is always a challenge. It has, however, established successful relationships with these customers. Demand for white wheat may certainly change, but presently it seems to be increasing. Identity preservation, by its nature, may insulate the wheat from certain vagaries of the commodity wheat market by enhancing production and addressing food safety issues.