QSR, CPG, and Retail customers have difficulty changing menu prices on the fly, so, therefore, in volatile commodity markets, they tend to request fixed price contracts with their suppliers. 

The dilemma is that sales is anxious to retain customers and honor fixed price agreements, but what happens when prices go wrong and erode your profit margins? 

AEGIS Hedging can effectively hedge all of these agreements of the leg into hedge strategies that will maintain and possibly increase margins. The managing of both sides of these agreements can be complex. However, AEGIS Hedging can help you continue offering fixed-price strategies, maintain market competitiveness, and meet your customer’s needs. 

Is the value of your products in inventory below the current market price? 

AEGIS Hedging can help you lower inventory costs with a consistent hedge program. In addition, AEGIS Hedging has risk analysis tools that can help you with scenarios and what-ifs to help you manage inventory effectively. 

Are you entertaining adding OTC
type transactions to your hedge strategies?

Sometimes hedging with counterparties instead of exchanges with OTC hedges can more accurately represent your exposure. But unfortunately, there are more requirements around market data, MTM, and reporting. 

AEGIS Hedging has all the market data required, can MTM your transactions, and can help you with complex risk management and financial reporting. 

Do your farmer owners ask for fixed price agreements in the future that include terms, fixed prices, and even optionality? 

Many COOP farmer owners have been looking to their COOP to maintain a stable cash flow for their products and require fixed price agreements in this volatile market to do so.  

Keep your farmer owners committed and happy to stay competitive with your other local COOP's. AEGIS Hedging can help you offer agreements to all your owners, large or small, as well as longer terms and different strategies to navigate these volatile commodity markets.