Wednesday September 11, 2013
Cargill Introduces Price Security Programs
Amsterdam — Cargill Cocoa & Chocolate has launched three new price risk management tools to help protect its customers from market volatility that could affect its prices, the company reports.
CocoaPacer, CocoaPacer Cap and CocoaRange Cap allow customers to secure prices within their ingredient purchase contracts to avoid the effects of sudden increases in cocoa prices, yet allow a discount in the event prices fall before physical shipment.
Customer Risk Manager Tom King explains: “Because of continued cocoa price volatility, many food manufacturers are coping with extraordinary uncertainty when managing price risk exposure to cocoa and chocolate ingredients. We feel that, by combining our risk management discipline with our knowledge of the cocoa and chocolate sector, we have developed a consistent and methodical approach to managing price risk that is of real benefit to our customers.”