Does it feel like weather events are becoming more extreme – more rain, snow, heat waves, tornadoes, etc.? Well, scientific studies support your feelings. And does extreme weather mean more volatility in agriculture commodity prices? Well, as my daughters used to say when they were younger, "no duh." And if greater volatility is the future, do you need more robust commodity management systems that track your business in real-time and have strong analytics? At least here at Eka, we say it’s not a "nice to have" but a "must have" or you will not be able to make smart decisions in the current market environment.
According to a "Special Report of the Intergovernmental Panel on Climate Change" conducted by 220 climate scientists, extreme weather events such as droughts, heat waves, hurricanes, and flooding have been increasing in length, frequency, and intensity and are projected to continue to increase throughout the 21st century. An example stated that record hot days, which previously could be expected once every 20 years, are now likely every other year.
According to the World Economic Forum, representative extreme weather events from last year include:
For those that don’t want to only rely on my daughters, OXFAM, an organization dedicated to helping people get out of poverty, published a paper titled "Extreme Weather, Extreme Prices." The paper models the impact of extreme weather – like droughts, floods, and heat waves – on the prices of key international staple crops. This research shows how extreme weather events in a single year could bring about price spikes of comparable magnitude to two decades of long-run price rises. OXFAM’s suggestion is that we need to stress test the global food system for weather changes just like banks were stress tested.
I think most people would agree that we are living in a period of more extreme weather events and more extreme weather means more volatile agriculture prices. If we agree on that, we should be able to agree that you need a more modern commodity management system.
Eka’s ETRM software and CTRM software solutions are the most advanced in the market, period! In addition to Eka's next-generation E/CTRM solutions, Eka launched Commodity Analytics Cloud a few months back, which adds the real-time analytics companies need to manage in a volatile environment. Commodity Analytics Cloud is designed specifically for companies in the commodity markets, harnesses data from internal and external data sources, and provides a commodity intelligence engine that delivers previously unavailable insights. Learn more in "The Benefits of Analytic Solutions Focused on Commodities."
Eka has the solutions to manage in today’s volatile environment – check it out at https://www.ekaplus.com/smart-commodity-management-solutions.aspx.