Trading in Turbulent Times: The Key to Success
International trade has gone through a series of unexpected events in recent years – the pandemic, Brexit, trade wars, energy crisis, and supply chain disruptions. These turbulences have put trade to the test. Hence, in times when every business step may be fraught with risk, the importance of the right trading partner increases manifold.
Limited Transaction Risk
Trade is a dynamic and complex industry, encompassing a wide range of activities – from sourcing products from creators and manufacturers, to concluding agreements with customers, to organizing the logistics and delivery of these products. It’s an industry that requires not only a thorough understanding of the prevailing laws and regulations, but above all the ability to predict trends, recognize changing prices, and effectively manage risk.
As emphasized by Łukasz Klażyński, Board Member at Foodcom S.A., “Making transactions entails a huge risk, as due to fluctuations in demand and supply levels, commodity prices change constantly. Weather phenomena, currency exchange rate changes, global economic growth, or transport and storage costs – everything affects the price. However, in today’s dynamic times, transactional risk is an inherent part of every business.”
Global Purchasing Power
Despite the emerging challenges, trade also offers immense benefits. It provides access to products that would not be available without international trading operations. Agreements, such as futures contracts, allow both buyers and sellers to hedge against price fluctuations. The global trade activities undertaken by Foodcom S.A. provide the opportunity to monitor many markets simultaneously, and consequently, the prices of goods in those markets.
“Thanks to the scale of operations, we are able to negotiate more favorable contract terms, reducing costs related to transportation, tariffs, and other logistical fees. As a result, customers benefit from more competitive prices while having access to high-quality products. The purchasing power our company possesses benefits not only large entities in the market but also smaller companies that would find it difficult to negotiate a profitable price directly with the manufacturer,” adds Łukasz Klażyński.
The ability to adapt, anticipate, and effectively respond to dynamic changes in today’s unstable environment is not just an asset, but a necessity. Trusted trading partners play a pivotal role here, enabling companies to access global markets, resources, and distribution channels. In the face of market volatility, stable and long-term trading relationships can help secure raw material supplies, stabilize prices, and maintain business continuity.
