Upstream Ag Professional - February 18th 2024

Essential news and analysis for agribusiness leaders

Shane Thomas

Feb 18, 2024

∙ Paid

Index for the week:

Farmers Edge Announces CommoditAg Now in Canada: Can an online marketplace work in North American agriculture?
1. Muddy Waters Short FFH Report
Sense-prescribe-act: Sentera takes on precision weed management with alternative to See & Spray
John Deere Q1 2024 Earnings
2022 USDA Agriculture Census Highlights
EPA Provides Update on Over-the-Top Uses of Dicamba
InnerPlant Achieves Satellite Dection in Argentina
Why Growth Models Fail
Search Functionality and Audio Summary

1. Farmers Edge Announces CommoditAg Now in Canada: Can an online marketplace work in North American agriculture? - Farmers Edge

Key Takeaways

Farmers Edge is launching their CommoditAg marketplace into Canada.
Marketplaces have traditionally been challenged in North America due to factors such as a lack of fragmentation in the market, a lack of focus and specificity, a lack of liquidity, commoditized nature of many ag products and relationship realities.

Note: The announcement is surrounding expansion into Canada, but I am looking through both a USA and Canada lens to assess the viability of CommoditAg in both countries a whole.

Following a successful venture in the U.S., CommoditAg brings its innovative online marketplace to Canada, marking its first international expansion.
 CommoditAg’s Canadian launch is not just about products; it’s a comprehensive platform that introduces a wide array of products including nutrients, chemicals, equipment and services, creating a convenient one-stop-shop for farmers.

The first thing that comes to my mind when reading this announcement is the following quote attributed to philosopher George Santayana:

Those who do not learn history are doomed to repeat it.

Marketplaces in North America have been challenged for over two decades now.

There are bankrupted companies, pivots and struggling organizations everywhere. I have highlighted marketplace challenges extensively in Indigo, Marketplaces & Grain Marketing Tech and Aggregator Marketplaces vs. Platform Enablers in Agribusiness.

I want to be open-minded around this effort because sometimes timing does change what technologies and business models have a fit. So I reached out to Farmers Edge to ask: What novel insight or approach makes CommoditAg uniquely positioned to be successful in North America with a marketplace?

The response was the following:

CommoditAg stands out due to its mission of including retailers that lack an established ecommerce platform/website, unlike many larger retail chains. In doing so, CAG provides an opportunity for these retailers to enhance their online presence. We also welcome large retailers too who wish to leverage CommoditAg as an additional channel for expanding their online reach.
Furthermore, our platform is designed to offer farmers a broader array of options that were previously unavailable. This includes access to services within their local area, diverse selection of small equipment, parts, other than just crop inputs. Through these offerings, we aim to cater to the specific needs of farmers while facilitating greater convenience and efficiency in their procurement processes.

I’ll touch on some of these comments below.

United States Uptake

In the press release, they state the following:

Following a successful venture in the U.S. CommoditAg brings its innovative online marketplace to Canada

First, I wanted to see what the “successful” venture in the United States looks like.

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