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International Food and Agribusiness Management Review >
Volume 08, Issue 3, 2005 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/8138
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| Title: | Veggies 4U's Energy Pricing Dilemma |
| Authors: | Braga, Francesco |
| Keywords: | Energy price risk Natural gas supply contract Financial engineering Risk |
| Issue Date: | 2005 |
| Abstract: | Veggies 4U is a young and dynamic family-run greenhouse: Lucy and her husband run the business with the help of a small group of friends and colleagues who serve on the company's Board of Directors. Lucy is preparing a report to the Board to recommend a natural gas supply contract for the next three years. The company has received four different contract offers, ranging from a simple forward contract, to a maximum cost contract with a price floor. The case focuses on the pricing and risk management opportunities offered by an integrated North American natural gas market. Lucy has to assess the different supply contract offers received by the company and to reverse engineer them in order to benchmark their cost with that of potential synthetic alternatives Veggies 4U could build. Once Lucy has decided what to recommend, she has to sell it to the Board. |
| URI: | http://purl.umn.edu/8138 |
| Institution/Association: | International Food and Agribusiness Management Review>Volume 08, Issue 03, 2005 |
| Total Pages: | 10 |
| Language: | English |
| From Page: | 69 |
| To Page: | 78 |
| Collections: | Volume 08, Issue 3, 2005
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| 0803br01.pdf | 217Kb | PDF | View/Open |
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