Flaxseed Marketing Practices and Costs at Country Elevators

Excerpts from the report Introduction: Over 90 percent of the annual U. S. flaxseed crop is produced in North Dakota, Minnesota, and South Dakota. Since the sales value of flaxseed is based largely upon its oil content, nearly all flaxseed is sold off the farm, whereas varying percentages of other small grains are retained by producers for feed. The bulk of the flaxseed enters the market by way of the country elevators. It has a higher per-unit value than any other small grain, greatly increasing its importance to elevator management. This study was designed to analyze flaxseed marketing at country elevators, the main objective being to determine the relative importance of elevator handling costs, transportation charges, and the total margin of return over costs on a per-bushel basis. This cost analysis should be helpful to flaxseed growers, elevator operators, handlers, and processors, all of whom perform flaxseed marketing functions. Through improved marketing practices, elevator marketing costs may be held down to the benefit of the flaxseed grower, the industry, and the consumer of flaxseed products.