KWS Provides Good Example of Supply Chain Co-operation

KWS Commercial Director Andrew Newby believes that learning from their experience with Cordiale could help them to bring future varieties to market more quickly. In this case co-operation and communication across the supply chain happened spontaneously. In future they want to ensure that it is built into their processes.

HGCA’s Supply Chain Manager Jenny Batchelor says: “The marketing of Cordiale is an excellent example of how good communication across the supply chain can help benefit all those involved. HGCA’s Supply Chain Partnership is there to encourage best practice in the cereals industry including better communication and co-operation.”

Video and audio podcasts of interviews with Andrew Newby can be found on HGCA’s website at www.hgca.com/supplychain .

HGCA Issues Price Risk Management Checklist

At a time when grain markets have once more proved highly volatile, HGCA has issued a new Price Risk Management Checklist designed to help growers manage their risks. The ten-point checklist, which can be downloaded from HGCA’s website, covers all aspects of selling grain including the development of a strategy, trading futures, and buying options.

HGCA’s Supply Chain Manager, Jenny Batchelor, said: “We have once again seen significant volatility in grain markets over the past twelve months, with wheat prices falling from a high of £150 per tonne in 2008 to £90 per tonne in September 2009. At times like these growers need all the help they can get to ensure that they receive the maximum return for their crops. The Price Risk Management Checklist is part of HGCA’s programme to ensure that farmers have all the tools that they need.”

The 10 point checklist covers:

1. Knowing the net cost of production
2. Setting a target price
3. Understanding and monitoring the market
4. Knowing your basis
5. Ensuring you have an understanding of the management tools available
6. Developing a strategy
7. Trading futures
8. Buying options
9. Speculation
10. Monitoring existing positions

Copies of the checklist can be downloaded from HGCA’s website at www.hgca.com/supplychain or ordered by email from hgca@cambertown.com.

HGCA Price Risk Management Workshops

Another of HGCA’s resources designed to help with Risk Management is a series of workshops, entitled ‘Making the Most of Grain Markets’. The full list is as follows:

4th November           King’s Lynn
10th November         Bury St Edmunds
11th November         Huntington
24th November         Andover
25th November         Buckingham
8th December           Cirencester
9th December           Telford
15th December         Grantham
16th December         Market Rasen

2010
19th January York
20th January Darlington
26th January Aberdeenshire
27th January Fife

Risk Management Resources on the HGCA Website

HGCA’s provides a variety of Price Risk Management resources for levy payers on its website. To find out more visit www.hgca.com/supplychain and look at the Business Management section.