We offer 3 different cotton ginning contract types:
Fixed Bale Contract:
The grower agrees with their Grower Services Representative to a fixed number of bales at a specified ginning price. If they decide to price their seed with Namoi Cotton it is known as a net ginning for seed contract. If the grower decides to retain their seed for their own use it becomes a retained seed contract.
Force Majeure (FM):
Force Majeure refers to a situation whereby circumstances beyond your control (such as drought, flood or a storm event) limit your ability to deliver the committed number of bales. In such circumstances Namoi Cotton may bear the production risk. This is on a case by case basis and done in close consultation between a grower and their nominated grower services representative. The grower may elect to either price their seed on the day or retain seed as above.
Balance of Crop (BOC):
A Balance of Crop Contract is when a grower nominates a specified amount of bales (in consultation with their nominated Grower Services Representative) that they believe they will produce based on the amount of hectares they have planted. Similar to an FM contract Namoi Cotton will bear the risk for the grower, however all bales produced must be ginned by Namoi Cotton. At the time of commitment, a ginning & seed price is agreed upon.
Balance of Crop contracts can also be completed for forward seasons locking in the gin price for a specified time (eg 3 years) – the seed is then priced season by season. This protects the grower from any ginning price rises.