Commodities Desk

Overview

Good market information is essential to make informed decisions. In 2006 FARMANCO introduced the "FARMANCO Commodities Desk". There are an increasing number of alternatives in marketing your grain and we recognise the need for our clients to receive professional unbiased advice from somebody they know and trust, and who will be around for the long-term. This service is designed to provide clients with various tools and information that is easily understandable and enables you to make informed marketing decisions.

FARMANCO does not have its own Australian Financial Services Licence and therefore cannot offer advice in its own right. To enable FARMANCO to give specific recommendations in derivatives, Donald McTaggart and Jane Packard are Authorised Representatives of Plum Grove Pty Ltd.

It is a legislative requirement that an Authorised Representative discloses the details of the Licensee, as follows:

Plum Grove Pty Ltd
Trading as Plum Grove Commodity Trading Solutions
Australian Financial Services Licence No. 231163
PO Box 235 North Fremantle WA 6159
Phone: 08 9335 4773
Fax: 08 9335 6682
Web: www.plumgrove.com.au

Don McTaggart: Authorised Representative No. 298483
Jane Packard:   Authorised Representative No. 289658

There are three levels of service:

1. Priority Marketing Service
2. Market Reports by subscription
3. Non-Priority Phone access.

Priority Service

The Farmanco Marketing Service provides an intensive grain marketing service. There is a limit to the number of clients that can receive this service, and this is decided by a first come first served basis.

This service includes:

• Developing a five year marketing blueprint that will include allocating grain to the three Grain Marketing Sectors of Pooling, Price Risk Management and Out-Performance. The blueprint will take into account the client's attitude to risk and their marketing objectives.
• Developing an annual marketing plan including specific target prices and strategies for the main grains being produced. The plan is recorded and analysed using our own templates and a comprehensive report is prepared. The plan includes a review of previous years plan and performance.
• Providing recommendations for the implementation of that marketing plan.
• Providing timely market information to assist clients with marketing decisions.
• Monitoring the client's position and providing an actual against plan summary after each transaction and marked to market information of derivative positions.

Active marketing of farm commodities (grain in particular) has become increasingly essential as a means of hedging business income against volatility in prices and currency. It is becoming more important to manage price risk as industry deregulation proceeds and more viable as greater numbers of pricing products are developed by grain traders and financiers.

A formalised marketing plan is the best tool your business can use to develop a disciplined approach to marketing of its produce. The marketing plan is used by the client and their specialist marketing advisor as a tool to set target prices that cover different levels of costs and profit for the business. The plan is used to develop and record marketing strategies that will achieve those prices and monitor the expected cash flows from sale decisions.

Other Services

• Commodities Desk Weekly Newsletter.
• Daily price information provided by 'Daily Grain'.
• Market Alert SMS.

For more information about the Commodities Desk and assistance with deciding what plan suits you best, please contact Don McTaggart on 9295 0222 or Jane Packard on 9751 4322.