Commodity Pools

During the past twenty years, the nature of commodity pools in Australia has changed considerably from single desk marketing authorities to individual pools run by a variety of managers.

Commodity pools allow individual producers to combine some or all of their commodity production into a pool (ie they pool together grain, or sugar) generally in order to achieve benefits of scale or diversifying their pricing alternatives.

Some key advantages in marketing through commodity pools include:

  • Access to markets unattainable as an individual; 

  • Access to skills of a professional commodity marketer/risk manager;

  • To gain scale to allow lower cost;

  • Access (via the pool) to a variety of derivative instruments not otherwise available.

Farmarco and Pools

Farmarco has been involved in developing and managing commodity pools since 1996, as both a developer of pools for third party providers, and as an independent manager of the pools.

Farmarco and Sugar Pools

Since 2008, Farmarco has been at the forefront of deregulation of pricing in the Australian Sugar Industry. Contact us to see how Farmarco can provide merchants, co-operatives and even individuals with specifically built commodity pool services.

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