Lessons in Mitigating Risk Along the Ag Supply Chain for Better ROI
Oilseed & Grain Trade Summit, Nov. 15-16
Nobel Prize laureate William Faulkner, an American writer, said, “…the trouble is, if you don't risk anything, you risk even more.” Taking risk is often the path to success, but how can agribusinesses reduce risk yet still reap great rewards? Hear several proven risk management techniques at this month’s Oilseed & Grain Trade Summit, November 15-16 at the Hyatt Regency Minneapolis.
Opening the discussion on risk management is a pre-event half-day short course “Price Risk Management” on Monday, November 14, continuing with a two-hour session on Tuesday morning. Presented by Richard Jelinik and Doug Prohaska of INTL FCStone, the course is designed to provide an overview of the necessary knowledge to protect and/or enhance an agricultural firm’s bottom line. Advanced level strategies and a practical discussion on corporate policy requirements regarding price risk management tools will be covered as well.
“Proper management of risk can enable topline growth, especially as a major focus area in the realm of overall cost management,” said speaker Dave Brown, vice president of Global Commodity Price & Risk Management, Global Procurement, at Mondelēz International, a global snacks powerhouse with net revenues of approximately $30bn.
Brown, who is responsible for roughly $6bn of commodities risk at Mondelēz, will present Managing Commodity Risk in Today’s CPG World. “As the traditional packaged food industry struggles with growth and continues to consolidate, it is critical that organizations in this space are dialed in on their ability to manage margin, as profit expansion will at least allow the resources required to tackle changing consumer trends.”
In his presentation, Brown will highlight some of these trends, particularly with U.S. based food companies, and share some ways in which Mondelēz has been better able organize its commodity risk management processes and approaches to bridge the gaps and ultimately meet these new world needs.
A risk management panel on Wednesday, that includes participants from Land O’Lakes – Kevin Schriver, chief procurement officer; Cargill – Daniel Hofstad, director; Seed SEF – Edward Woodford, CEO; and Prohaska from INTL FCStone, will address the following:
- How to know when you really have alignment on risk strategy with the key owner of the finished goods profit and loss
- Examples of very good risk and sales alignment, and strategies for how to close the gap when there is less than stellar alignment of the two
- What unique challenges do certain commodities face, and how to manage this extraordinary risk scenario
- How risk management tools can best be used to leverage reduced risk and increase enhancement in the supply chain
Other topics at the Oilseed & Grain Trade Summit related to risk management include strategic planning options to counter weather variations, an examination of geopolitical influences and ag prices for 2017, and the impact that surplus oilseeds and grains in the 2016 market will have in 2017.
The Oilseed & Grain Trade Summit and the co-located Organic & Non-GMO Forum: the only venue where players from the entire ag value chain meet for comprehensive knowledge sharing. Learn more at www.oilseedandgrain.com and/or www.ongforum.com.