Policy Alternatives Relating To Agricultural Trade Options And Other Agricultural Risk Shifting Contracts

This book discusses the issues of integration within food and fibre supply chains and the challenges in managing price risk. The problems of integration and price risk are interwoven in agricultural supply chains with production and supply risk as well as hoarding. However, without supply chain integration through commercial trade markets there can be no forward market upon which forward transactions and the management of price risk can be based. Without a forward market that can reduce opportunistic behaviour, there is likely to be little security of supply, particularly under high production risk and price uncertainty. Whilst price risk management is possible under certain circumstances, there are many factors that can prevent the development of forward markets or cause them to collapse, thus undermining the ability to manage price risk within acceptable risk and return parameters. Market positions therefore need to be valued and often settled daily due to the risk of contract default. In addition, the issue of currency risk and its management applies to international market positions and transactional exposures. The book analyses a range of price risk management strategies from forward contracting through to futures and options hedging, and finally to over-the-counter products. Evaluation techniques are developed to aid decision-making. The author concludes that forward market development may be the exception rather than the norm, and that whilst favourable price risk management outcomes may be possible, they can sometimes be caused more by luck than through good management. It is shown how tactics are an important consideration in decision-making to minimize costs and losses.

The book 'Indian Agriculture and Agribusiness Management' aims at providing students of agribusiness, teachers, researchers, professionals and all those interested in the field of agriculture with a broader understanding of agribusiness as a system and the key concepts needed to successfully manage an agribusiness enterprise. It serves as a basis to gain a comprehensive understanding of how the agribusiness system operates and the challenges faced in the movement of food and fiber from the producer to the ultimate consumer. The first part of the book helps in understanding the context within which agribusinesses operate in India. It focuses on the breadth and scope of agribusiness in India, policy initiatives undertaken by the Indian Government and the legal framework within which they function. The second half of the book deals with the complex network of inter related activities performed on the farm and past the farm gate such as natural resource management, input management, marketing management, supply chain management and risk management, as well as the institutional linkages needed for the same. It addresses issues relevant to decision making in a rapidly changing, highly competitive market environment led by technological advancement in area such as information technology and biotechnology. It provides an insight into management challenges related to rising input costs and shifting consumer preferences. Cases pertaining to the best practices and potential strategies adopted by a few innovative, successful organizations have also been incorporated. The book also incorporates several case studies that highlight the various concepts discussed in the different chapters.