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BPEX: Managing raw material costs

Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks.

To help achieve this, BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices.
 
Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times.
 
This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options, an explanation of how these tools work, real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet.
 
BPEX Head of Supply Chain Development Andrew Knowles said: “The aim of the site is to demonstrate not only the potential but also the limitations of these risk management tools.
 
“Volatility is going to be a characteristic of feed prices going forward. We are trying to help ensure businesses can make informed decisions as to what tools they may wish to use to protect themselves from extremes.”
 

Editor PigProgress

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