Commodity supply chains have never been more fragile.
Procurement departments, risk managers, finance and treasury teams, (not to mention producers) across the world had to scramble to secure supplies, manage enormous price movements and try to maintain their margins as best they could when even the best laid plans went awry and forecasts were shown to be totally wrong..
Sadly none of us have a crystal ball, which means that whether your team is based on a farm or in a finance department, volatility in your business can be catastrophic for your margins.
on two key areas:
- Risk management - it is far too complex and we wanted to make it simple and effective
- The long tail of illiquid commodities - Less than 15% of the world's commodities are traded on transparent markets with easy access to risk management tools like futures contracts. This long tail of commodities not traded on exchanges is where we could add the most value, so that's where we started
fully regulated commercial insurer
to grow the company
An Introduction from
our Founder & CEO
It's a business that faces constant change and has to react to new rules and consumer tastes, but also the constant threat of disease and adverse weather. As I grew older, one of the risks that interested me the most was the enormous impact of commodity prices on producers like my dad. Managing any business in an increasingly globalized market is really hard, especially without the tools that could bring certainty to our income.
After leaving the farm for a life first on the trading floor of a bank in London and then for 10 years building technology companies around the world, I found myself approaching 40 and working in Chicago at a company that was a leader in data science.
In 2015/6 many new 'fintech's' were emerging that were transforming the way we invest in shares, transfer money or insure our belongings. They all had one thing in common and that was to make the opaque, complex world of finance simpler and more consumer friendly.
While I was naturally thinking about commodity producers at this early stage, what started to strike me whenever I talked to commodity consumers like food manufacturers and restaurant chains was that they too seemed hungry for a simpler, more insurance-like solution where they could protect their risk with precision, rather than hoping a cross hedge or feed plus model was going to stay robust.
Building something simple and financially strong is of course incredibly complicated, but by this stage I had attracted a world class team to help me build the business that was to become Stable.
We're honored that our work to reimagine commodity risk management has grown into something that's valued by our clients around the world, but I still think like a farmer in the way we build our portfolio, balancing risk across many diverse commodities, or the way we build partnerships that are designed to last for a lifetime.
This is a great industry, with great people and businesses doing extraordinary things and it's a privilege to play our part in helping them invest in people, ideas and the future."