In my October 12th Blog, “What formula for an adjustment should you consider”, I detailed how an account of sale from the receiver can be the best available evidence of the value of your produce at destination. This Blog is dedicated to what criteria makes-up a detailed account of sale and I will share a “mocked-up” accounting that you should always expect when you are being forwarded net proceeds.

I personally would never grant or offer an adjustment to a buyer; then again I most likely would have few to no customers! You, however, want to retain customers; therefore, there will obviously be times when you will need to consider offering your customer an adjustment or allowance on a shipment of produce. One of those times is when your product arrives at contract destination, is inspected and fails to meet contract specifications i.e. "Good Arrival Guidelines" or “Good Delivery".

I am pleased to have as guest blogger in this edition of Straight from TommyO by Mr. Bill Zentner of Blue Book Services, Inc. - “The Blue Book,” opining on a topic that is dear to my heart, assessing credit risk. The Blue Book for over 115 years has provided financial facts to the fresh fruit and vegetable industry and has recently launched an additional assessment tool (AR Reports) which can identify emerging trends to potential and current customers regarding credit.

In last month’s blog, "Shipper’s Confirmation of Sale, Part 2", I wrote about the importance of confirmations of sale, especially when you have special terms to the sale that you normally do not utilize. Confirmations of sale memorialize the agreement or terms between you as the shipper and the buyer. By the same token, the buyer sometimes may also issue a confirmation of purchase outlining its understanding of the terms of sale and purchase.

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Produce Price Index

Think farmers are making most of the money from your grocery bill? Think again. Use the Produce Price Index (PPI) to find out the difference between how much you spend on fruits and vegetables and how much actually goes back to the farmer.

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