Background: For some years now Feed Central has been operating very successful forward contracts for all types of stock feed. These contracts have stood the test of time, even during the extremes of the market place.

Feed Central regularly undertakes forward contracts for stock feed with both buyers and sellers.

The first step in forward contracting is to advise us of what you need.

Buyers can place an order using this link

Sellers can view current orders here      

Types, Varieties and Bale Sizes: All types of feed and bale sizes can be forward contracted.

Benefits: Forward contracts ensure that hay producers have a guaranteed market for their produce and that end users of hay have got a guaranteed supply.

The aim of Feed Central forward contracts is to ensure that business is conducted under terms and conditions that are beneficial for all parties.

Volume: Within the contract volumes will be specified on either a tonnage, bale or area basis. Tonnage and bale based contracts are very specific, while area based contracts are normally for total production off a certain paddock.

A minimum volume of 40-50 tonnes is required. This would be delivered in a minimum of 20-25 tonne loads.

Contracts: Feed Central forward contracts are executed through NACMA based legally binding contracts.

Delivery Schedule: All proposals for delivery will be considered. This may include delivering an even amount every month, or delivering the entire product over the growing season.

Need Storage: Feed Central and our growers have dedicated feed storages. These are managed to minimise shrink / fire risk and ensures the quality of the feed remains stable.

Grading and Quality Description: All feed delivered under Feed Central forward contracts is subject to Feed Central's strict quality control and assessment criteria. This includes inspections, moisture testing, quality statements and vendor declarations.

Customers and suppliers may also wish to stipulate feed test parameters as part of their contract.

Freight: Feed Central has a team of professional and efficient transport operators, specialising in stock feed. Due to their proven track record we have preference to use these carriers.

Payment Terms: Open to negotiation and should be covered during the negotiation stage.

The Role Of Feed Central: Feed Central coordinates all aspects of these contracts, including delivery schedules, freight and quality monitoring. Feed Central makes money from this transaction by buying the feed from a supplier adding a small fee and re-selling it to a customer or several customers.

Fees & Charges: Prices agreed upon are inclusive of all fees and charges, unless otherwise declared.

Prices: Negotiation takes place to ensure that the prices are competitive and achievable.

All options regarding price, including; 12 month fixed price; stepped prices over winter months; or 100% delivery straight off the paddock are able to be discussed. Other innovative ideas regarding pricing, storage and handling will be considered and implemented where possible.

Risks: Forward contracts must be honoured regardless of spot market price movements.

The main risk for a buyer is that the spot market for the commodity may fall, meaning that the buyer will be committed to the contract.

The main risk for seller is that the spot market for the commodity may rise, meaning that the forward contract.

Forward contracts should be used as a risk management strategy and as part of sensible farm / business management practices.

What Happens in Case I Can't Supply (Supplier)?: Feed Central works with you to source the commodity from elsewhere. It is rare but possible that you may have to buy the commodity for more than you sold it for to replace the contract, vice versa it is possible to make a profit from this situation.

Summary?: Feed Central's forward contracts and lucerne tenders are designed to achieve our mission: "Take the Hassle out of Hay." Once you become part of the Forward Contracts you become an important client of Feed Central. We work with you to solve any problems that may eventuate.

In reality we hold the view that contracts are there to be enforced when someone is doing something wrong. When something goes wrong we do our best to work through it, with minimal consequence to any party.

To discuss how we can take the hassle out of stock feed for you, call us today on 1300 669 429 or email us.