Fuel & Soft Commodity Hedging for Agricultural Companies
Most agricultural companies, perhaps your included, feel forced to accept fuel price fluctuations from suppliers or at the pumps, despite the significant risk to your gross profit margins.
On the flip side, your expected to sell soft commodities at the global market rates.
This exposure can be totally avoided.
With Commodity Lock, smaller agricultural companies with turnovers under £100m can access fuel hedging for the first time, while larger agricultural companies who currently hedge can now access a faster, more cost effective hedging solution.
It’s simple, customised hedging to mitigate your unwanted market risk.
- Lock in the price you pay for fuel, or the price you sell soft commodities, for 3-36 months
- Benefit from the same system used by international agricultural companies for decades
- Remove uncertainty in the price of your fuel or soft commodities
- Start small as proof of how effective it is
Commodity Lock is a one-of-a-kind, specialist hedging tool offering UK agricultural companies budget security by fixing future fuel or soft commodity prices without changing any current supplier or customer agreements.
Alan Clarke Testimonial - Mini Clipper LTD
Mini Clippers is a logistics firm operating a 40-strong fleet offering next-day and economy delivery services, including palletised and hazardous freight. Like many logistics and haulage companies, they identified in their company accounts that they needed a solution to manage their commodity (fuel) risk. One of their largest and most volatile overheads (for most of our customers, fuel costs are >20% of their overall costs).
They were introduced to Foenix Partners’ hedging tool, a simple way to mitigate the risk of fuel price fluctuations. After completing Foenix’s quick set-up and onboarding process, our team of experts worked with them to create a bespoke trade, hedging 50% of their fuel requirement for an initial period of 6 months with a recent extension for 10 months.
The recent upward move in fuel prices meant Mini Clippers’ fuel costs increased, but with their hedge in place, they have reimbursed the difference between the price they hedged and the price they paid at the pump, which was 4.89ppl last month.
Here’s what Alan Clarke, Financial Director of Mini Clippers, had to say,
“The benefit of fuel hedging with Foenix Partners is it gives our company control of fuel costs. I would absolutely recommend them. 5 stars. Thank you for allowing us to get fuel arrangements in place.”
Foenix Partners is an FCA registered company.
Foenix Partners specialises in providing commodity hedging and currency solutions to UK companies and individuals with international business. We also hold a specialist FCA license to provide commodities fuel and oil product hedging for UK businesses. In a volatile and uncertain market, our success is founded on simplicity and expertise.
Want to know more?
If you’re new to fuel hedging and want to understand more about how it works to protect your profit margins, including pricing and payment details, see our complete guide to ‘The What, Why & How of Fuel Hedging’.