Price Risk Management (PRM)

The training provides participants with an in-depth exploration of the factors that contribute to price fluctuations in their markets. By comprehending these dynamics, they can better anticipate shifts and plan accordingly.

The workshop arms these stakeholders with the analytical tools and metrics needed to quantify price risks. By accurately measuring risks, farmers and traders can make more informed decisions about when to sell their produce, which contracts to enter, and how to manage their inventories.

Perhaps most importantly, the training delves into strategies and instruments that can be employed to minimize the impact of price risks. This could include tactics such as diversification, forward contracting, hedging with futures, and other financial instruments that provide a buffer against market volatility.

This section focuses on the global coffee trade and provides participants with critical insights into international marketing strategies. It covers the best practices for exporting coffee, including an understanding of global market trends and consumer behavior.

Understanding the intricacies of trade agreements is crucial. This segment educates participants on differentials, which are the variable aspects of commodity pricing, and Incoterms, the standard terms used in international trade contracts that define the responsibilities of buyers and sellers.

In this lesson, attendees learn the importance of drafting solid contracts that protect their interests and how to lock in favorable pricing through price fixing mechanisms. This knowledge helps in minimizing financial risks and ensuring stable revenue streams.