Forward Contracts
How you Benefit | Types of Ownership
Forward contracts help you lock in a price for livestock to be delivered at a particular time to a set specification. They help balance the 'boom or bust' syndrome and enable you to better manage your cash flow.
Elders forward contracts are now available for feeder cattle and limited over the hooks grades, for all NSW, VIC & SA producers. For further details please contact george.last@elders.com.au
- You can manage your price risk by locking in a set price for your sheep, pigs, lambs or cattle.
- You can manage your cash flow and plan your budget with the certainty of cash flow.
- You can meet your customers’ expectations with a product that will arrive on time, to specification and at a known price.
- You can implement a genetics program which helps deliver stock to the specifications you know your customers require.
Types of ownership within branded beef programs
Retained Ownership
You can retain full ownership of your cattle through the feedlot to slaughter. In long-fed programs such as AMG Gold, you can retain full ownership until export of the branded boxed meat. With retained ownership you pay the costs of feedlotting and processing, but also receive the additional revenue as the product increases in value as it moves through the meat marketing chain. Retained ownership is also available for domestic cattle.
Joint Venture
You share the costs with Elders, along with extra revenue achieved through value adding. Elders will take a principal position if livestock are needed and not available via retained ownership or joint venture programs.
Finance
Elders Rural Bank finance packages are available to approved applicants to fund retained ownership and value-added marketing programs, as well as a tailored livestock trading package.
