This book discusses the issues of integration within food and fibre supply chains and the challenges of price risk. Integration and price risk are interwoven in agricultural supply chains through the problems of production risk and hoarding. Without integration through commercial trade markets there can be no forward market upon which forward transactions and the management of price risk can be based. Without a forward market that can reduce opportunistic behaviour, there is likely to be little security of supply, particularly under high production risk and price uncertainty.

Whilst...