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Agricultural News

Indigo Ag Launches Innovative New Platform Designed to Connect Grain Buyers Direct to Producers

Fri, 12 Oct 2018 11:48:01 CDT

Indigo Ag Launches Innovative New Platform Designed to Connect Grain Buyers Direct to Producers A new company called, Indigo Ag, is rolling out its program for growers to sell their grain- from small quantities to large volumes- directly to buyers who pay a premium for it. David Perry, chief executive officer of the four-year-old company, spoke about Indigo’s model and how producers can forge a profitable partnership with the business recently with farm broadcaster, Ken Root, of the Iowa Agribusiness Network. You can listen to their complete conversation by clicking or tapping the LISTEN BAR below at the bottom of the page.

“As we’ve matured as a business, we’ve really began to focus more and more on the agricultural supply chain, and we recently launched Indigo Marketplace which is a digital grain marketplace that connects buyers of grain directly with the farmers that produce it,” Perry explained. “We think that is a really important step in improving agriculture’s and farmers’ profitability.”

If Indigo Marketplace takes off as intended, Perry says the platform will eventually become the place everybody who wants to buy grain goes and everyone who is selling grain goes to facilitate that transaction.

“We’re seeing that already,” Perry remarked. “We have over $2 billion worth of bids in the marketplace and those buyers range from end users and processors like flour mills, breweries, feed facilities to local grain elevators.”

A unique trait of this model is that it offers customers access to a trend of growing popularity; something the market has started to specifically request and is willing to pay for - the preservation of grain identity. Perry says the Indigo Marketplace model establishes a system that can trace grain from its origin all the way to the customer.

“It’s a big deal for customers. Identity preservation essentially allows you to do two things. It allows you to specify how you want something grown and know you’re getting the grain that way. And, two, it allows you to tell your customers about the source of their food. Customers increasingly are caring more about that.”

By contracting with Indigo, producers will now have the ability to command a premium for their grain if certain predetermined standards of quality are met upon delivery.

“Today in Marketplace, we have bids that are willing to pay 50-75 cents above the market price for wheat with certain qualities,” Perry said. “This is all relatively new, but our early experience is that buyers are more than willing to pay a premium if it offsets some other costs for them.”

Learn more about Indigo Ag and Indigo Marketplace, by visiting their website, or listen to Perry and Root speak candidly about the program’s early success by clicking or tapping the LISTEN BAR below.



Listen to Perry and Root speak candidly about the program's early success by clicking the bar below.
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