Best-in-class strategies help protect member costs.
From the ingredients used in menu items to the plastic used in packaging, commodities form the backbone of UFPC® purchasing. Recent changes in the world economy, U.S. energy legislation and other economic issues have made commodity markets more volatile and complex. As a result, today’s buyers must not only build relationships with suppliers, but also must grasp the complex issues affecting the items they negotiate to purchase. UFPC’s commodity risk management team watches the markets and serves as a vital link of strategic information between concept co-op boards and UFPC purchasing teams.
The commodity risk management team has three specific functions:
- Centralize information for purchasing teams
- Assess and monitor commodity market risk
- Use risk management tools to smooth price volatility
By proactively monitoring raw-material costs from the farm to the store, UFPC’s commodity risk management team acts as a resource to assist UFPC buyers in evaluating market conditions. With the commodities team acting as a central point of contact, purchasing teams can share relevant strategies and information.
UFPC-Managed Commodities
• Beef |
• Poultry |
• Dairy |
• Produce |
• Packaging |
• Oil/Shortening |
• Pork |
• Wheat & Grains |
Timely Communication
UFPC’s commodity risk management team publishes the monthly Commodity Update newsletter, and the dairy purchasing team produces The Cheese Wire, a publication covering the dairy market. Log in with your username and password to view these publications. Both publications provide relevant information on key commodity areas.
As markets remain volatile, UFPC is able, when markets provide appropriate opportunities, to use risk management tools to help smooth or eliminate volatility. With the commodity risk management team in place, UFPC can help ensure favorable pricing for concept co-op members.