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Understanding Guaranteed Minimum Return (GMR) in Commodity Processing

Guaranteed Minimum Return (GMR) is a critical metric in commodity processing, denoting the minimum finished product that must be returned to the state or recipient agency based on the commodity input. Typically expressed as a percentage on EPDS and SEPDS, GMR helps ensure that the returned product meets specific requirements. For instance, a 75% GMR equates to ¾ pound of finished product, while GMR values over 100% indicate the addition of extra ingredients. Accurate representation of GMR is essential for processors to fulfill contractual obligations and avoid under or over yield scenarios.

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Understanding Guaranteed Minimum Return (GMR) in Commodity Processing

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  1. Guaranteed Minimum Return What is it?

  2. Guaranteed Minimum Return GMR • GMR is the minimum amount of finished end product that is to be returned to the State or recipient agency based on the amount of commodity received by processor

  3. Guaranteed Minimum ReturnGMR • GMR is the minimum amount of finished end product that is to be returned to the State agency or recipient agency based on the amount of commodity supplied to the processor • GMR shown as a percentage on the EPDS and SEPDS

  4. Guaranteed Minimum Return GMR • GMR is the minimum amount of finished end product that is to be returned to the State agency or recipient agency based on the amount of commodity supplied to the processor • GMR shown as a percentage on EPDS and SEPDS • GMR should be realistic and accurate

  5. GMR • 75% GMR = ¾ pound finished end product

  6. GMR • 75% GMR = ¾ pound finished end product • GMR>100% = additional ingredients added

  7. GMR • 75% GMR = ¾ pound finished end product • GMR>100% = additional ingredients added • Under yield – processor fails to produce enough end product to meet GMR

  8. GMR • 75% GMR = ¾ pound finished end product • GMR>100% = additional ingredients added • Under yield – processor fails to produce enough end product to meet GMR • Over yield – processor produces more end product than anticipated

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