Terr€trade: presentation event of the new service. The full video

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Published on Dec 11, 2024

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In an increasingly uncertain cereal market subject to unpredictable fluctuations, it is more difficult to protect oneself from the risks of price volatility and it is impossible to know in advance whether the following year's prices will rise or fall. Today, farmers should not look for the absolute best value, but rather the most satisfactory one in relation to the cost structure per hectare of their company. They need to know precisely what their income will be and when they will be able to collect it, in order to correctly plan and manage investments. With this in mind, Terremerse has just launched a new and innovative service to support agricultural entrepreneurs in maximizing the profitability of production: Terr€trade - Cereal delivery program with predetermined price. From October to May 2025, members will be able to set the price every week on a portion of "mixed red soft wheat n. 3 fino" not yet harvested, having the certainty of collecting 100% of it within 60 days of delivery. This service is configured, in fact, as an additional management to the three "classic" ones proposed by the Cooperative - Short Management, Medium Management, Annual Management - and adapts to the needs of medium and large-sized agricultural companies, which wish to organize the marketing of their product according to more dynamic criteria. Management at a predetermined price is foreseen for a maximum of 1/3 of the product subject to the commitment to deliver, with a minimum quantity of 25 tons. The remaining 2/3 will be contracted in Annual Commercial Management with a price to be determined. During the period of fixing the price, it will be possible to sign multiple commitments to deliver by joining Terr€trade for each one under the same conditions, with multiple independent contracts. For farmers, the advantages deriving from this new project are numerous, including: reduction of risks linked to price volatility, possibility of planning investments, counting on programmed liquidity and having the opportunity to obtain a satisfactory value in relation to the cost structure per hectare of their company. The Cooperative's activity on the financial market will not have any speculative purpose, but will be aimed at a hedging operation through the "forward" sale of the same share of the delivered product, offsetting any capital gains or losses deriving from the sale of the product on the physical market with those of the financial market. At the moment, Terr€trade is a pilot project that only provides for the delivery of "mixed red soft wheat n. 3 fino", but in the future it may be extended to other cereal-protein crops listed on the electronic stock exchange, such as corn, soybeans and durum wheat. Terr€trade is a commitment to guarantee agricultural companies a stable and resilient entrepreneurial future. Terremerse does not only look at today, but builds a sustainable tomorrow together with its members.

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