Wool company Platinum agribusiness launches minimum price scheme

02 Jun '05

2 min read

Platinum Agribusiness offers a range of innovative forward selling options including:

The Wool Indicator Contract is the most simple and effective way for wool producers to take advantages of opportunities to sell forward. It gives up-front security of price combined with determination of quality adjustments through on-sale of the wool at auction. There is no restriction on the range of wool types, which can be delivered, and no complicated schedule of quality adjustments.

The Minimum Price Scheme is a breakthrough product that has been developed to meet the needs of a wide range of wool producers. Participating growers will each receive a minimum price for a quantity and micron grade of their choice. Wool can be delivered at any time within a nominated period and the final price will be based on either the minimum or the market at the time - which ever is higher.

Forward Physical Contracts have been available in the wool industry for many years and are a popular way to secure price. Recently some varied methods of clip preparation have been introduced that allow costs to be lowered when the wool is to be sent direct for processing. We have relationships with a number of traders and processors that are looking to secure wool in this manner and would be pleased to provide price quotations when required.

We are currently developing a Basis Contract and have a trial underway. Basis Contracts are a contract based on expected wool production characteristics with a price grid for various qualities.

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