Business Software Applications

Agribusiness Commodity Trading and Risk Management

In the last months; we researched ERP and how it could be applied to the Agriculture sector. The answer is not a straight cut.

In its roots; Enterprise Resource Planning was designed to meet the demands of manufacturing industries: (1) You have a planned demand, (2) You manufacture against that demand and (3) You review your inventory against the new future demand. So it all starts with forecast planning and it ends with sales of goods... that's not quite exactly the way Agriculture businesses work.

In Agriculture; the demand is always infinite; the key is to make sure you are always selling at the best price... and this is where Commodity Trading comes into the picture. You want to allocate your agricultural products at the best price in the market. Why?

For instance: rice. Whether seeds or final rice products; whatever is produced will sell. And you could also potentially stored it or slowdown your production to wait for better prices. But farmers are not assemblying the rice, it grows. They have harvest seasons and they need to time those with the market demand. Of course, if you are a global agriculture player with infinite land assets probably an ERP could help (at the very financial high level). But for localize or country-based operations, the key software is called “Commodity Trading and Risk Management” for Agriculture sector.

Commodity Trading and Risk Management software is considered a key piece for Agri-business looking to better plan and manage their crop cycles with the price/market demand. This type of solution is primarily targeted to businesses that maintain a trading capability and are looking to integrated their supply chain practices. If you want to learn more about this, here is a list of some of the industry players:

Allegro
Agriculture Financial and Risk Management Components
Agriculture Physical Logistics Components

Brady
Commodity software solutions. Brady offers a choice of straightforward and flexible solutions to facilitate the transaction from producer to marketplace, and enable the efficient management of a large number of contracts and numerous products.

dbc SMARTsoftware
dbc SMARTsoftware is an industry leader and innovator focused on providing the best agribusiness information management solution in the world.

Eka
With offices in Asia Pacific, Europe and USA, Eka provides solutions for Commodity Trade in the Agriculture industry.

FarmERP
FarmERP ver 2.1 is the latest and most advanced version of FarmERP , a complete resource-planning multi-user software suite for managing multiple farms. It is helps in input management, HR management, production, financial and marketing management of any farm. It is most advanced and comprehensive farm management software solution suiting to small, medium to large sized farms.

Just Commodity
As the leading provider of business solutions and professional services focused in the commodities sector, JustCommodity has the expertise and the software solution to help you make the right moves.

Navita
POMAX is an enterprise-class commodity trading and risk management system
POMAX brings the same strengths to Agricultural commodity trading

OpenLink
Provides a complete front to back office solution for Agricultural Commodity Management including grains, sugar, cocoa, coffee, cotton, pulses, oilseeds, nuts and livestock – from commodity procurement, inventory management and costing, transportation and logistics to ticketing, storage, contract management, and merchandising through to position management, hedging, FX risk, accounting, treasury management, reporting and compliance.

Progressive software
Canada's Leading Agri-Industry Business Software Company Providing 'Progressive Solutions' since 1974.

Solarc
As energy companies produce fuel from feed stock and with freight rates rising, food and beverage producers need commodity price risk management and support tools to help deal with the volatility of the market. They need more effective hedging strategies to control their margins. That’s where SolArc RightAngle comes in.

Triple Point
Commodity XL provides complete control over trading operations. With Commodity XL traders can better manage current positions and gain real-time information to take advantage of market movement. Commodity XL integrates physical and financial trading, improves trading efficiencies with deal entry templates/blotters, provides sensitivity analysis, and enables "what-if" scenarios.

TRADEPAQ: TRM
Software for physical commodities
Global provider of supply chain execution, trade and risk management software for the commodities industry. Headquartered in NYC, with offices in the Netherlands, Madrid, Bogota, Dubai, Kuala Lumpur, Mumbai and Hong Kong.

Posted on August 08, 2013