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. The change to a closed cooperative structure has set the stage for continuing the present marketing activities in an environment much more conducive to high quality product because it will generate a larger supply of quality white wheat from which the food ingredient segment can draw. More important, this new organization will be the springboard into further business developments for white wheat and other grain producers.