The Key to Reliable Feed Ingredient Sourcing in an Unpredictable Market

No matter the industry, or season, supply chains can face volatility that brings challenges to all users involved. Whether it’s the rise of gas prices affecting the cost of transportation or drought conditions affecting crops across the U.S., it’s nearly impossible to control most of these factors. However, developing a strategic sourcing plan with a feed broker and distributor can lessen tension across all areas of your operation.

Key Microingredients Being Sourced in the Southeast

While the southeast United States has several locations for salt and limestone, most buyers work with a feed ingredient broker and distributor to purchase the microingredients they need - rather than working directly with the source. 

If you missed our last blog on the difference between a feed ingredient broker and a feed ingredient distributor, here are the basics: 

A feed ingredient broker connects buyers and sellers of feed ingredients or products. 

This process can include sourcing products from suppliers, negotiating the price, and leveraging their market knowledge and relationships in order to find the right fit for each customer.

A feed ingredient distributor purchases, stores, and delivers feed products directly to customers.

They  are also responsible for managing inventory and warehousing, as well as coordinating feed logistics.

Both roles are extremely important in sourcing the best options of microingredients especially when flexibility is key in an uncertain market.

Multiple Supply Points Create Options (And Reduce Risks)

Diversified brokers create a more competitive market for sourcing your microingredients because more players are involved in trying to gain your business. A competitive market allows for better pricing, flexible logistics plans, and a reduced overall risk. Because if one supplier can’t fulfill their order, a diversified broker has the network to call on one of their other partners.

Access to Microingredients You Need

Common microingredients that are needed for animal feed include salt, limestone, magnesium oxide and calcium chloride. When you work with a microingredient broker, you have access to their network of suppliers - and those suppliers often have multiple supply points within their network. This “spiderweb” of connections gives you access to multiple options to source the exact microingredient you need at the cost and delivery system that is best suited for you. 

Alternative Options for Microingredients 

In an already volatile market, what is the worst case scenario? The salt or limestone you need isn’t available at the time or price you need it. Having a larger supplier network allows for alternative options into microingredients you may not have had access to otherwise. 

Meat and bone meal is an excellent example of the type of microingredient that is used as a source of calcium and phosphorus in chicken feed to help with bone strength and eggshell quality. While it’s not a direct replacement for the calcium provided by limestone, it can help close the gap and keep your operation moving forward without a complete loss in your feed nutrition.

What Buyers Should Ask Before Choosing a Feed Ingredient Supplier

Relationships matter in the feed industry. And longstanding supplier partnerships allow your operation more flexibility in not only finding the microingredients you need, when you need it, and at the most competitive price, it also allows for alternative sources and microingredients when markets tighten. 

When reviewing the right microingredient sourcing partner for you, consider the following questions: Do they have multiple sourcing relationships? Can they source alternative products quickly?

Reliable sourcing is more important than ever, and working with an experienced feed broker can help minimize risk (not to mention, take the worry off your plate: Is my feed going to arrive on time? How much will buying feed cost me this month?) 

The Harris Crane Process 

We know the importance of reliable, trusted relationships, especially when you can’t plan for every scenario that may impact product delivery. With multiple supply points and carriers and a team that is personally accessible, we serve our clients with the highest standards. 

If you need support in finding a strategic sourcing partner in today’s feed and agriculture market, we’re here to help. Call us at 1-800-432-7755 or email us at jclarck@harriscrane.com. 

Harris-Crane, Inc. offers feed brokerages and feed distribution as part of our core services. Learn more here.