Files
Abstract
Increasing grain price volatility over the last year has revived the discussion on optimal marketing
strategies. Various models of optimal grain marketing have been proposed and simulated in the literature.
In this study an overview on these models is presented and critical aspects are discussed. Optimal
strategies are then applied to the wheat market in Germany and Poland. Results indicate that gains
from optimal marketing are rather small and uncertain in the real world, indicating that scientific assistance
might be of limited importance. However, an understanding of optimization and price generating
processes is likely to improve farmers’ decisions, e.g. if farmers have additional (private) information
to improve price forecasts.