Grain business grain resale. Reselling grain: how and how much can you earn? Workforce plan

Any entrepreneur who wants to open a grain business thinks about whether it is profitable to engage in this type of business today. To make a profit in this type of activity, you need to consider several important factors and make a plan.

Why processing?

To date, a very unfavorable situation has developed for agricultural producers, especially in the segment of the agro-industrial market that concerns grain crops. The essence of the problem is that almost three quarters of irrecoverable grain losses are due to the low quality of their processing after harvesting, and often the complete absence of any processing. Growing grain crops in itself is a technically complex matter, but often the special equipment necessary for processing is not even available in some large agricultural enterprises, let alone individual entrepreneurs (farmers). This suggests that most manufacturers in this area do not have a well-developed business plan.

What primary processing processes are meant? First of all, we are talking about grain drying and cleaning. Agricultural producers are often simply unable to afford this expensive equipment, or they simply “simplify” the production process by saving on these stages.

This seriously affects the price of the final product. Grain that is not dried on time is classified as feed, and not as food; its cost on the agro-industrial market is reduced by an average of 600 rubles per ton.

What does this lead to? Of course, this will lead to higher prices for grain and products made from it, including bread.

In this regard, starting your own business for processing grain seeds will be very profitable if you draw up a competent business plan and establish the correct production process.

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Registration and credits

If you already have a business plan, then you should start by registering your business. Registration of an agricultural enterprise is carried out in accordance with Art. 51 of the Civil Code, as well as the Federal Law “On State Registration of Legal Entities”.

You should not forget that Russia provides support for agro-industrial enterprises at the state level in order to make the cultivation of grain crops and their processing profitable. Such programs are implemented, as a rule, at the federal, regional, and sometimes at the local levels. you will be able to receive a preferential loan or specific assistance to expand the collateral base, which will make it possible to obtain much more significant borrowed funds. A good option would be to provide preferential terms for leasing agricultural equipment.

Some banks, for example Rosselkhozbank, have their own programs for preferential lending to agricultural enterprises. Borrowed funds here are issued to business entities and farmers if they have a business plan. You can get a loan of up to 3 million rubles for a period of 3 years without collateral, and in this case your spouse can act as a guarantor.

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What tools do we need to get started?

As practice shows, in order to start a business, a high-quality plan and relatively small capital investments are required, as well as competent investments in grain processing in order to receive a decent income without producing anything other than grain drying and cleaning services.

In many localities in Russia, agricultural structures left over from bankrupt enterprises are currently standing idle. Renting or purchasing an elevator that has become unnecessary will not require large investments. But you will need funds to bring this structure into proper technical condition, so this should also be included in the business plan. Do not forget that this business is one of the most profitable in the field of food production, so all your investments will quickly pay off. Moreover, this does not mean the cultivation of grain crops, but only the processing of raw materials. Your business plan should take into account that the profitability of this type of business activity may be higher than that of organizations specializing in the sale of grain or manufacturers of finished bakery products.

After this necessary agricultural structure has been purchased, care should be taken to purchase equipment.

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What equipment will we need?

Equipment will be needed for drying grain, since this is the main operation of the primary processing of grain seeds. To do this, we need to purchase a stationary sectional dryer. This equipment is often universal; it can be suitable not only for grain crops, but also for legumes and grasses. In terms of the fuel used, the dryer can also be called universal - it runs on gas, liquid and solid fuel and electricity. A sectional dryer costs on average about 1 million rubles.

The productivity of this equipment at normal moisture content of the raw materials will be about 40 tons of dried grain per day. When starting your own business in this area and drawing up a business plan, you need to calculate how many dryers you will need, taking into account the volume of revenue. It is necessary to provide space for the installation of additional equipment for drying grain seeds, since dryers have a significant advantage, expressed in the absence of restrictions on the number of lines in the production complex. In this regard, no problems with connecting dryers should arise.

For further processing of grain seeds, you will need a cleaning complex, which is represented by units capable of carrying out preliminary, primary and secondary processing of grain. Dry grains that pass through cleaning machines are removed from impurities and, if necessary, calibrated, resulting in high-quality grain or high-quality seed material, because, as is known, only the largest grains are used for seeds.

However, it’s not even a matter of calibration, since grain purified from foreign impurities is considered to be of higher quality and, accordingly, when sold, you can earn much more for it than for uncleaned grain. If we talk about the productivity of grain cleaning machines, the spread, depending on the type of equipment, is 25-60 tons per hour. The cost of grain cleaning machines directly depends on their performance: a machine of the first type costs approximately 550-650 thousand rubles, machines of the second - somewhere around 900-950 thousand rubles, which should also be taken into account by your business plan.

An intermediary business is an undertaking that does not require significant financial investments.

In fact, a novice intermediary entrepreneur only needs to have good organizational and analytical skills.

The essence of the intermediary business in the field of agriculture is to search for profitable offers for the sale of certain goods and find buyers.

The entrepreneur’s profit will be formed by receiving a commission, the amount of which must be specified in the agency agreement.

A good business idea in this type of activity is grain resale.

As you know, Russia is one of the world leaders in the production of such products. Every year, millions of tons of grain are exported to other countries.

How to organize a grain resale business

In order to engage in the resale of grain crops and other agricultural products, you need to purchase a car on the secondary market.

This will minimize the time spent on traveling to potential sellers. The costs of purchasing personal vehicles will be recouped after the first major transaction.

After a novice entrepreneur gets a car, he will need to decide on the type of agricultural products that he will resell.

This can be a grain crop (wheat, corn, etc.), as well as sugar, sunflower seeds, etc. It is also worth drawing up a business plan from the beginning.

After this, you need to monitor prices for the selected product in your region.

An entrepreneur can look for suppliers of products in neighboring regions, but in this case he will need to focus on large volumes.

Otherwise, the profit will be minimal due to the cost of delivering the products. An option to solve this problem could be to include transportation costs in the final cost of the consignment.

Where to buy grain for resale

Where is the most profitable place to purchase grain or other agricultural products for resale:

It is advisable for a businessman to cooperate with small farms. As a rule, they do not have conditions for long-term storage of grain, and they sell grown products at minimal selling prices.

Another option is to purchase grain from large collective farms.

After the businessman finds profitable offers for the sale of products, he needs to take several kilograms of grain for testing.

Grain samples must be taken to the nearest elevator.

This condition cannot be neglected, because resold products must comply with existing agricultural GOSTs.

After checking the grain, you can begin searching for a buyer. Today there are many Internet resources that contain information about large enterprises interested in purchasing one or another agricultural product.

If the buyer is satisfied with the grain parameters that the businessman found, then he can safely proceed with the transaction. All its conditions should be described in detail in the agency agreement.

To do this, you need to organize cooperation with an experienced lawyer.

The difference between the cost of buying and selling grain can reach 300-500 rubles per ton. Thus, by reselling 100 tons of products, you can earn the first 30 thousand rubles in profit.

If a businessman manages to carry out at least 3 large transactions per month, his profit can reach 100 thousand rubles.

You can get free business consultations in my VK group “New business ideas and plans.”

Sometimes ideas for making money are literally right under our feet. Take a look around. We live in a country that occupies a leading position in the production of agricultural products. Wheat, sunflower, corn, sugar, rapeseed, rice - all this is sold in huge volumes both within the country and abroad. We suggest considering a business involving intermediary services with the resale of grain.

What are the benefits of using an intermediary to buy grain?

Producers and exporters set almost the same price for their agricultural products. The difference is often only 1 ruble. But when we are talking about hundreds or even thousands of tons of grain, the difference in the final cost no longer seems so frivolous. This motivates buyers to look for companies with the most profitable option. But it's not that simple. Low cost may hide poor quality. All these problems are precisely what intermediaries who monitor suppliers and analyze product quality help solve.

It is the intermediary who knows where it is more profitable to buy good grain. For his services he takes a much lower percentage than large traders. For example, for 100 tons of wheat worth 530 thousand rubles, the commission is 30,000 rubles.

Where to start a grain intermediary business?

When engaging in such activities, investments are practically not needed. Everything that is required is in your head. Plus you will need a phone number and information about suppliers and the quality of their products.

If we take a more detailed approach to this process, then the initial set of an intermediary for the resale of grain includes:

• Directory of suppliers from across the region.
• A phone with a favorable tariff plan, since you will have to talk quite a lot.
• Ability to negotiate and persuade. This can be either an innate quality or an acquired one. It all depends on your desire.
• Having a car will be a plus. After all, you will have to travel to meetings with buyers and suppliers. Face-to-face contracts will bring much better results.

How to start a grain resale business?

The first thing you need to do is study the grain market specifically in your region. Find out what crops are grown, what their average cost is and what offers will be the most interesting.

If the intermediary is a beginner, it is better to start with small farmers. They are almost always ready to give in on price because they do not have the required space for storing grain in large quantities.

In addition, they often accept payment in cash, which simplifies payment.

The next suitable option is large collective farms. But it’s worth going there when the intermediary already has a certain base of buyers.

Constant monitoring of the market is important so as not to lose sight of new players in this area with more advantageous offers.

But the price difference should not always be decisive. You should also familiarize yourself with GOSTs and technical parameters of grain products: gluten, IDK, nature, etc. This information will allow you to clearly and accurately determine the quality and class of products.

Where to look for clients? The best way to do this is through the Internet. There are many sites on this topic.

Do not immediately abandon low-quality grain. Such products are purchased at a lower cost by poultry farms and feed production plants. It is better to immediately offer high-quality grain to traders, but in this case the volumes must be quite significant.

Resale of grain: a detailed diagram of the work of an intermediary

Let's look at an example of how an intermediary can get rich by selling grain. So, you have found a buyer who needs 100 tons of wheat. You will be required to do the following:

• Conclude an agreement stating that during the validity period of the document the client makes purchases only through you. This is very important to eliminate risks such as collusion between the buyer and seller and the purchase of products without your participation. A standard agreement can be downloaded on the Internet and modified to your specifications by a lawyer.
• Find a seller (for example, a farmer) who is willing to provide this volume of products. You specify the final price and discuss it with the buyer.
• If the latter is satisfied with everything, go to the farmer and take grain samples. It is better to choose from different storage locations to avoid detection of defects after making a purchase.
• You take the samples to the elevator, where they conduct an examination. The cost of such a service is from 200 to 300 rubles. If, according to the results of the examination, the grain is of high quality, proceed to the final stages of the transaction.
• Inform the buyer about the quality control details. If everything suits him, call the supplier and discuss the details of the future meeting.
• At the meeting, both parties sign the purchase and sale agreement in your presence. It is better to schedule meetings on neutral territory so that neither party finds out the contact information of the other and simply “dumps” you next time.
• After paying the invoice, you receive remuneration for the work, control the shipment of grain (if indicated in the contract) and delivery of products to the buyer’s address.

There is another plan for resale of grain. If you have a trusting relationship with the buyer, after checking the quality of the product, you can provide him with the seller’s contacts, after which signing and shipping are carried out without your participation. But you should resort to this method only when you are really confident in your client.

Working as an intermediary is financially profitable and there are practically no investments

Legal aspects of a business plan for the resale of grain outside the region

If you plan to expand the boundaries of your business and take it to a new level, it is best to register an LLC and choose the simplified taxation system (USN) as your tax burden.

Such a business is a good start for those who have not yet fully decided which path in agricultural activity to choose, and also who do not have enough funds for a more serious undertaking. Resale of grain and intermediary services is a relatively new activity that is in considerable demand.

In the next video you can watch an interview with an entrepreneur who is involved in intermediary in the grain business.

In 2017, a record grain harvest was harvested - about 128 million tons. Farmers plan to increase the figure to 150-160 million in the near future, which will make our country the undisputed world leader in the production of this crop. These volumes imply an increase in sales abroad and the emergence of new players specializing in foreign supplies.

The conditions for organizing a grain export business are now excellent. However, this business is more complex than it seems. Those who plan to become an international grain trader will definitely find our article useful.

Only soldiers become generals

Grain trader Arthur Koloskov from Rostov-on-Don advises starting with studying the regional market and only after that making a decision to launch your business. “Try to find established wealthy export resellers and enter into agency agreements with them,” he says. “Firstly, you will gain the necessary experience, and secondly, you will form your own, albeit small, client base.” According to Koloskov, the domestic grain market is divided between large companies. They own linear elevators, port terminals and key grain carriers.

On the one hand, this complicates the rules of the game - however, experienced grain traders are confident that, given the current favorable environment, agile newcomers have a good chance of success. You can not only earn an agent's fee, but also get a decent margin due to the difference between farm and exchange prices. The cost of grain crops on regional markets (especially in the outback), subject to instant settlement, differs by 5-15% from futures quotes.

How to get away from the all-powerful intermediary

To have higher profits, it is wise to register your company in one of the Black Sea countries. This can be done, for example, in Romania in the cities of Braila and Galati, where a local grain exchange is being formed. The company must have the form of ownership SRL - the Russian equivalent of LLC, as well as a name and logo registered with the national Trademark Office. By the way, a large-scale reconstruction of the Danube port infrastructure has begun in Romania specifically for the reception and transhipment of grain, which indicates Bucharest’s desire to become a European grain hub. Experts say that opening a representative office in Turkey or Egypt will be more difficult.

Responsible trading

Purchasing grain for subsequent export involves concluding a purchase and sale agreement with Russian farmers. However, it is not a fact that such a contract will be executed in good faith. The forums are filled with angry reviews from deceived grain traders. Most often, small companies get scammed. To avoid being cheated, you need to adhere to a number of rules.

“Open a letter of credit for the seller against providing them with shipping documents, starting with the bill of lading and ending with the phytosanitary certificate,” advises Arthur Koloskov. - Write down the delivery schedule in the contract, having previously agreed it with the survey company. The latter should appear during loading at your first call. The seller is not responsible for delivery failure if the ship or wagons are not delivered on time. His obligations are considered fulfilled from the moment the grain is transferred to the carrier.”

This comment shows that grain trading requires the utmost responsibility from a businessman, and coordinated work from his team. A mistake made by a large company will be compensated by other contracts. But a beginner will have to be extremely careful and attentive - he does not have such extensive opportunities.

How to hedge risks

The grain exporter must understand hedging. If a businessman holds in the elevator grain he bought in the fall, which he plans to sell in the winter or early spring at a higher price, this is called a “long position.” Opening a “long position” is a big risk; market prices can fall at any time.

“The easiest way is to sell 20-30% of the volume in order to buy it back in the spring. This is called risk hedging, advises stock broker Ilya Borodavnikov. - If a farmer comes to you and asks for money, promising to ship a certain amount of grain from the new harvest at a discount in the fall, then by agreeing, you open him a position on a futures futures contract. In other words, a grain trader can first buy the future harvest cheaply and then sell it at a high price at the peak of demand. Or, first sell the grain that has not yet been harvested and only then buy it back from the farmer, manipulating “long” and “short” positions. You need to carefully monitor quotes on grain exchanges (including on virtual platforms), where trading is carried out based on advertisements.”

How to become a grain trader

Organizing grain exports implies active activity in the domestic market - both for speculative purposes and for sales abroad. For such a business you don’t need much space - 2-3 rooms of 10-15 square meters. meters. The location is more important: it is advisable to place the office in the center of the regional capital. This will make it easier to interact with other companies in document management and logistics operations.

“The grain export business provides 40 percent profitability at the end of the agricultural year,” explains Ilya Borodavnikov, “which means that with loans at the level of 10 percent per annum, you can safely use bank money. I know people (true market sharks) who have made over 70% returns at higher lending rates by focusing on short and ruthless speculation. But it’s better for beginners not to take such risks.”

Arthur Koloskov encourages you to work only with your finances. “If you don’t have money, become an agent,” grain traders advise. - this market is ruled by strict unwritten laws, and banks will not cooperate without double collateral. If you have an extra 5-7 million rubles or a wealthy partner, why not try it?” An experienced entrepreneur is confident that investments in the grain business pay off in 2 years of hard work.

Conclusion

There are ample opportunities for grain exports in Russia, but it is easier for experienced and reputable traders working with small farmers to take advantage of them. It is better for beginners to gain experience as agents of large grain traders - and only after that think about entering the foreign market.

Undoubtedly, the grain market in Russia is quite well developed. At the beginning of the last century, it was our country that held the leading position in grain exports in the world, which we managed to maintain to this day. In terms of this indicator, last year we managed to get ahead of such giants as the USA and Canada. The domestic market is overcrowded with small joint ventures that are unable to properly organize sales. There is an urgent need for intermediaries between producers and consumers. For this reason, we suggest considering a business plan for grain wholesale trade with calculations.

Work algorithm

Before drawing up a business plan for grain wholesale trade, it is worth delving into the specifics of the business and understanding what’s what. The algorithm for doing business is as follows: a reseller buys wheat and other grain crops at the time of harvest. As a rule, then the price of grain is the lowest for the entire production cycle. Although there may be exceptions: fluctuations in the ruble exchange rate and gasoline prices, changes in the climatic and economic situation.

As in the securities market, the intermediary must record the slightest impulses in grain prices and analyze the data obtained. Based on the results, the reseller must predict when the maximum price is expected and when the grain should be sold. There are trends here: usually the maximum price is reached at the end of winter - beginning of spring, when most of the reserves have already been used up.

The harvest should be purchased in the Krasnodar and Stavropol territories, Rostov and Voronezh regions. The best distribution channels are abroad or to the northern regions. Buyers are ready to buy a product at an inflated price, but logistics costs in this case also increase significantly. In addition, supplies will be accepted from several thousand tons, so significant investments in purchase and storage will be required.

Business risks

The agricultural market for the sale of grain is well developed in Russia, and all critical issues have long been resolved. What you need to pay attention to when purchasing grain for further resale:

• Before purchasing grain, it is necessary to take the product for quality examination.
• Grain is taken from different storage locations for testing. Unscrupulous entrepreneurs hide low-grade grain under the top layer of class I.
• The examination is carried out in special laboratories, institutes and elevators, the results are documented.
• It is necessary to study the technical parameters and GOSTs for grain to facilitate determination of grain quality.
• Don’t neglect searching for clients on the Internet.

We equip the hangar

If you decide to get serious about wholesale grain, then you simply need to build your own storage hangar. Example. To sell grain to flour mills, the supply volume must be at least 1000 tons of grain. Finding a manufacturer willing to sell and supply such volumes will be extremely difficult. Therefore, the reseller buys grain of the specified class from several dozen small farms, accumulating the goods in hangars.

The warehouse must strictly comply with state requirements for:

• To scale.
• Temperature.
• Ventilation.
• Sanitary condition.

The hangar must be insulated, well ventilated with the function of maintaining constant humidity and temperature. The required area to store 2,000 tons of grain is at least 1,000 square meters. Finding such a hangar for rent is an impossible task. The most obvious thing is to build your own warehouse visit.

To build you will need to go through several stages:

№	Stage	Price
1	Search for a place	–
2	Conclusion of a land lease agreement for 5 years*	500 000
3		200 000
4	Obtaining a building permit	–
5	Foundation structure	3 000 000
6	Manufacturing of the structure
7	Installation
8	Additional work
Total		3 700 000

Organizational aspects

In this case, the optimal choice of organizational form would be an LLC with a simplified taxation system. This form provides an opportunity to enter the international market and cooperate with major market players. To engage in speculative business, it is necessary to license grain storage activities.

To legally register a business, you will need to go through the following steps:

№	Stage	Price
1	LLC registration (state fee)	4 000
2	Registration with the tax service	–
3	Submission of documents for licensing	300
4	State fee for obtaining a license	1 000
5	Ventilation maintenance contract for one year	30 000
6	Security system installation	100 000
7	Contract for disinfection and deratization	30 000
8	Obtaining permission from Rospotrebnadzor	–
9	Obtaining permission from the SES	–
10	Obtaining a fire inspection permit	–
11	Notification from Rospotrebnadzor about the launch of the project	–
12	Seal	1 000
13	Registration of a current account	2 000
Total		168 300

Technical equipment

It is noteworthy that this business does not require specific equipment. The only exception will be a truck (KAMAZ) with a capacity of 12,000 kilograms. On the secondary market they can be found for 2,700,000 rubles. In addition to large expenses, you will need:

• Work phone.
• Computer with internet and printer.
• Grain loader.
• Shovels, bags, buckets and other small household utensils.

About 300 thousand rubles will be spent on these needs. In total, you will need 3,000,000 rubles for all the necessary equipment.

Staff

For normal operation you will need:

Employee	Qty	Form of payment	Cover part	Minimum percentage depending on volumes	Total for all employees		Maximum percentage depending on volumes	Total for all employees	Payroll with deductions
Driver	2	Salary + percentage	10 000	5 000	30 000	39 060	30 000	80 000	104 160
Sales Manager	2	Salary + percentage	10 000	5 000	30 000	39 060	40 000	100 000	130 200
Handyman	2	Salary + percentage	8 000	5 000	26 000	33 852	20 000	56 000	72 912
TOTAL	6				86 000	111 972		236 000	307 272

Since the grain wholesale business is seasonal (June-July and February-March), the maximum wage fund falls on 4 months. For the remaining 8 months of the year, employees will receive the minimum wage, because almost all work will be suspended. Thus, the annual wage fund is calculated as follows:

(111,972 x 8) + (307,272 x 4) = 2,124,864 rubles.

The accounting section can be completely outsourced to an outsourcing company. On average, 120,000 rubles will be required for these needs per year. In total, the entire salary portion will cost RUB 2,244,864.

Inventory

To completely fill the hangar, it is necessary to make a lot of manipulations, trips, grain checks and calls that lead to nothing. So here you should study the price of grain and understand how much financial resources will be required to purchase such volumes. Let's take an example of wheat. In the spring of 2017, the cost of 1 ton of wheat ranges from 8,200 to 8,500 rubles. This is the lowest price for the season.

Thus, the purchase of 2,000 tons of grain will require 16,400,000 rubles.

Volume of capital expenditures

Name of the item of expenditure	price, rub.
Organizational expenses	168 300
Construction of a hangar for storing products	3 700 000
Technical equipment	3 000 000
Other unforeseen expenses	200 000
Creation of inventory	16 400 000
Financing activities until self-sufficiency	1 000 000
TOTAL	24 468 300

Schedule of work to launch the project

Name of works	1 month	2 month	3 month	4 month	5 month	6 month	7 month	8 month
Search for a place	+
Carrying out survey and design work	+
Obtaining a building permit		+
Hangar construction			+	+	+
Obtaining a license						+
LLC registration and registration with the tax service						+
Purchase of a truck and other auxiliary equipment							+
Personnel search							+
Launch of the project								+

To start the project during the lowest price season, it is better to start preparation work from the very beginning of the year. In September there is still an opportunity to buy grain at a minimum cost.

Financial results

Regardless of the volume of consumption, annual expenses will consist of the following items:

• Utility bills for electricity – 120,000 rubles.
• Land rent – ​​500,000 rubles
• Salary – 2,244,864 rubles.
• Fuel and lubricants – 500,000 rubles.
• Property taxes – 50,000 rubles.
• Taxes according to the simplified tax system – 900,000 rubles
• Other expenses – 100,000 rubles.

Total annual costs will be 4,414,864 rubles. annually.

Income from the sale of grain is due to price fluctuations. As already mentioned, in the low season the cost of one ton of grain drops to 8,200 rubles. At the end of winter - beginning of spring, the price rises to 13,000 rubles. Thus, the income from the sale of 2 thousand tons of grain will be 26,000,000. The profitability in this case is equal to 9,600,000 rubles, the net profit is 5,185,136 rubles. Business profitability will be 54%. The initial investment can be recouped in 5 seasons.

Benchmarks

• Start of work to launch the project: January 2018.
• Start of work: September 2018.
• First sales: March 2019.
• Reaching operational break-even: March 2019.
• Reaching projected income: April: May 2019.
• Payback period for the grain wholesale business: spring 2023.

Eventually

Organizing a business for the wholesale sale of grain requires large investments, impressive experience and knowledge in the field of agricultural products. However, high profitability attracts more and more investors. In addition, the embargo on grain exports was lifted not so long ago, and it would be a huge omission not to take advantage of the opportunity to earn good money.