Rising to the Challenge

An Interview with e-markets

The agriculture industry is facing increasing challenges and new issues around ever corner. Making the correct decision can be the difference between success or failure, says Scott Cavey, President/CEO of E-Markets, Inc.

NGA. Can you discuss the agribusiness climate today and how the role of the management team has changed?
Scott Cavey. The agribusiness industry is being bombarded today with market factors we could not have anticipated two years ago. If you consider the pace of building new biofuel manufacturing plants; the commodities required to meet their round the clock manufacturing schedules; the mergers and acquisitions of agribusiness to combine business operations and streamline processes; the volatility in the prices of commodities; the credit crunch and margin calls agribusiness executives are being called on to manage their business operations in a time of the unknown. It is no longer business as usual, but how to make the correct decisions in order to survive.
 
NGA. What does this mean in a practical sense to agribusiness executives, given the volatility in the market?
SC. Today, agribusiness executives need to make decisions quickly. In order to make good decisions, they need information that is accurate and timely. This information is from internal sources that include their financial systems and their operational systems; as well as external sources such as their lenders and the Board of Trade. The information that is being served up to the agribusiness executives must be consolidated from these different systems into reports or information that provide the executive with the snapshot they need to act. The financial turmoil today requires these reports need to be financially adept so it is not acceptable to have good operating systems alone, you must first have a great financial system.
 
NGA. How does an agribusiness survive in this new business environment?
SC. Agribusinesses survive by understanding the change and by adapting to this new business environment. For example, a co-operative that has been relying on faxes and mail to present contracts, tickets and settlements in grain merchandising may choose to trade them electronically – bring in software that can transmit those documents for them automatically. Eliminating manual entry is imperative for businesses to be fully efficient, increases their accuracy and improve cash flow. Executives must make decisions on technology platforms that speed processing and addresses audit controls. Many operating systems have been built to allow all sorts of creative agreements but today controls need to drive systems to eliminate risk mismanagement and provide the important financial reports to the credit community.

NGA. What does this mean in a tactical sense?
SC. In order to bring information in from multiple sources and consolidate it into reports that make sense – and that are available when and where the executive needs those – means the agribusiness has to adopt a technology platform that enables this interaction. Getting educated on electronic communications and learning about the standards that are being adopted in the industry thanks to organizations such as AgXML and Ag Gateway are critical moves by the executives. Working with others in the industry that have gone down this path to understand where to start is a first step. The agribusiness executive has to bring in those with experience in this process to help them build a long-term plan to adopt a technology platform which will enable the agribusiness to move forward to meet the challenges at hand and those that are coming.
 
NGA. What does E-Markets provide to managers in the agribusiness industry?
SC. E-Markets has a 13-year history of leading technology adoption in agriculture. We have been on the forefront of Internet use and of providing top financial systems to the retail sector, as well as utilizing XML and electronic transmissions of grain and input documents. We have given managers the tools necessary to provide accurate financial and risk assessment reports to lenders and systems to manage the document flow for seed and input sales and for grain. Our clients enjoy the best integrations because the platforms we chose allow for real-time communications. Our systems integrate behind the scenes, no more file downloads and uploads. The system sends and receives messages when you print tickets and submit processes.

Scott Cavey, President/CEO of E-Markets, Inc, joined the company in April 2000. Cavey’s extensive agribusiness experience includes holding executive positions for Purina Mills, Koch Industries and Cargill and management roles for MannaPro. Cavey consulted for the food processing and produce industries and in 1992/3 for the US Feed Grains Council in Russia.