Mercaris sees record organic trading growth in 2020
Published: February 8, 2021
Category: Market News
Trading platform sees 48 percent increase year-over-year
Trade of organic commodities did not stop despite the challenges from the global pandemic for the food and agriculture industry in 2020. In fact, Mercaris market data firm reported a 48% increase in volumes transacted via their online platform in comparison to 2019.
During 2020, Mercaris recorded transactions totaling 637,000 bushels of organic grain, with an additional 192,000 lbs. of organic cream coming from quarterly auctions. Transaction fee revenues from trading services doubled and Mercaris expanded their existing base of trade partners by 27%.
With unprecedented market dynamics driving consumer behavior in 2020, Mercaris saw growth in food grade demand. Organic blue and organic white corn constituted the largest year over year demand growth, while supply lagged with consumers at home and turning to comfort foods, like tortilla chips. Demand for organic feed grade grains picked up as well, with a rise in consumption of organic animal proteins.
“Our trading platform is an important tool for price discovery in identity-preserved agricultural markets,” says Kellee James, CEO for Mercaris. “In addition to price discovery, we’ve built a reputation for providing an efficient way of connecting buyers and sellers to each other in order to get deals done.”
Looking into 2021, Mercaris plans to expand its trade platform to meet evolving needs of customers.
“We’ve seen markets developing for organic and non-GMO soybean meal, soybean oil, small grains and pulses,” says Ekeberg, “As our trade customers’ businesses grow and change, we’re working to help source and find markets to match those needs.”
For more information, visit: www.mercaris.com
Organic & Non-GMO Insights February 2021