Wednesday, October 04, 2006

Contract Production as Strategy

I’ve known Steve Hageman since my days in the seed business in the early 80s. At the time he was developing a new concept in the seed business, being a contract producer for seed companies that wanted to focus upon research and marketing. It was a new concept in manufacturing and especially in the seed business. And just as this outsourcing concept has grown rapidly in the general manufacturing field, Steve has had huge success in the seed business with it.

Steve is on the board of the Jasper Co, IN ED where I was giving a talk in Rensselaer. His company, Remington Seed Company, has 22 production facilities in seven Midwestern states stretching from Ohio to North Dakota. They produce corn, soybeans, wheat and alfalfa seeds with corn and soybeans being the most important.

If you are a farmer you might never have heard of Remington Seed Company even though they produce between 10 and 20% of the corn and soybean seed sold in the USA today.

What other contract production opportunities are there in the USA today? Any potentials that you have in your town?

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