Agribusiness Price Risk Management

Agribusiness Price Risk Management Solutions are hedging tools designed to assist you to mitigate the risk associated specifically with commodity price fluctuations. NAB allows you to, subject to approval, fix a price, select a price range or set a price floor/cap, up to 3 years in advance for certain commodities. This may assist you to plan and budget with greater accuracy, better control your margins and reduce the worry associated with monitoring price movements on overseas commodity exchanges.

Key features include:

• NAB provides you with a hedge limit based on a percentage of your underlying production, trade or procurement exposure
• The hedge can be established in either AUD or other currency denominations. An AUD denominated product will eliminate the need to establish a foreign exchange hedge as well (refer table below)
• NAB provides you with a maximum hedge term of up to 3 years (refer table below)
• NAB provides you with firm intra-day pricing in your time-zone, whilst you are at work, not while you are asleep
• There are no exchange traded brokerage fees or daily margin calls
• There is no requirement to physically deliver your commodity
• NAB provides you with up-to-date market intelligence sourced both domestically and from abroad. Strategy reports are provided on a regular basis to assist you to make the most effective hedging decisions relevant to your long term business objectives
• National Agribusiness Price Risk Management Solutions may provide you with marketing independence
• NAB offers the services of a National Risk Management Specialist who will help you establish a risk management strategy. Advice from an Independent Licensed Futures Adviser (ILFA) will ensure that you fully understand the hedging strategy and risks that have been discussed with your National Risk Management Specialist
• You will enjoy access to NAB's network of over 400 Agribusiness specialists in over 100 regional locations across Australia.

Agribusiness Price Risk Management Solutions

For further information and application details on National Agribusiness Price Risk Management Solutions, please contact your National Agribusiness Manager on 13 10 12.