According to changes in a commodity market, PPI has developed different strategies to maximize positions in those markets. When market trends are appropriate, pooling larger amounts of pecans together give strength to our position. With this pool, PPI will provide a grower an advance per pound of nutmeat yield on delivery. The payment will be made after the pecans have been delivered and graded to determine the yield—this process will take about 5 days from initial pickup of the pecans. Other payments will be made as the sales of the shelled nutmeat occur. The following will give you a summary of how this program will work.
This Marketing Pool is put together with the intent of assisting the grower in receiving a better price for any given lot of pecans. NO GUARANTEES are expressed or implied except that there will be a good faith effort to perform this service.
The full truck-loads of pecans will be picked up by PPI and delivered to a specified warehouse indicated on the Bill Of Lading. Less than truck load lots will be accumulated to make a full load.
Individual lots of the pecans will be sampled and graded to determine the quality and yield of the lot.
The shipping grower will be sent pertinent information pertaining to the lot along with the first payment. The information will include the net weight received excluding any moisture over 5%, the net edible yield, and information showing that PPI has taken into possession the pecans for the benefit of the grower.
PPI will then send the grower a FIRST PAYMENT that is determined to be appropriate for that marketing period. (i.e. If the lot graded 45% fancy nutmeat the grower would receive $.45 per pound delivered.) Each grower will be asked to sign a “Release of Lien” and return that document to PPI to assure the pecans are lean free. It is noted that the grower is not required to pay truck load freight, warehousing, insurance, or any other fees that might be associated with any particular lot of pecans delivered to PPI except those costs that go beyond the scope of regular marketing.
As the pecans are shelled and marketed over the following few months additional payments will be made. No guarantees are made about timing of any following payments. At this point it is undecided whether two or more payments will be made to finish the marketing process. Several items must be factored such as the size of the marketing pool, the eventual value of the pecans, and the markets into which these pecans are sold.
All pecans stored and marketed by PPI will be insured, placed in a secure warehouse, and secured by a third party to assure the grower that his product remains in good condition.