Chapter 1 Weather Risk Management for Agriculture
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Chapter 1 Weather Risk Management for Agriculture
Chapter 1 Weather Risk Management for Agriculture
chapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agricultureanagement tools and opportunities for agriculture. The aim of this chapter is to illustrate how an end user in the agricultural industry could use a market-based solution to mitigate the financial impact of weather on its business operations. The chapter draws information from the wealth of literatu Chapter 1 Weather Risk Management for Agriculturere written on the subject of weather risk management, with an aim to provide the reader with a step-by-step guide to how weather risk management instrChapter 1 Weather Risk Management for Agriculture
uments could be used and developed for the agricultural sector. The chapter is divided into four sections. Section 2 will focus on the key steps requichapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agricultureement instruments, giving a brief overview of how the weather market approaches and values weather risk and the implication this has for the end user. Section 4 will focus on the pre-requisites for weather risk management instruments, namely the weather data used to construct weather indices and to Chapter 1 Weather Risk Management for Agriculturesettle contracts. This section will also touch upon data cleaning and analysis that must be considered when pricing and structuring a potential transaChapter 1 Weather Risk Management for Agriculture
ction. Section 5 will summarize the chapter and reference sources for further reading on weather risk management.The Financial Impact of WeatherWeathechapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agriculturees of the weather on a daily basis. The media continually reports catastrophic weather events - floods, hurricanes and droughts - that impact individuals’ property, health and lives. Consequently, governments are also financially exposed to weather risk. They are called upon to provide direct financ Chapter 1 Weather Risk Management for Agricultureial, nutritional and housing support to their citizens in the event of weather-related disasters and must increase spending for rehabilitation and recChapter 1 Weather Risk Management for Agriculture
onstruction of infrastructure and assets as a result of damage incurred. Moreover the economy of a country' is also at risk to weather through busineschapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agriculture, a reduction in foreign investment in the aftermath of an extreme weather-related event. For example, with a death toll exceeding 30,000 (14,000 in France alone), the heat wave and drought across Europe in the summer of 2003 was the worst natural disaster in the region in the past 50 years. Aside f Chapter 1 Weather Risk Management for Agriculturerom the human impact, the extreme conditions particularly affected the agriculture, forestry and energy sectors: the total financial impact was estimaChapter 1 Weather Risk Management for Agriculture
ted to exceed €13 billion - the financial impact on agriculture and forestry in France was estimated to be €4 billion1Joanna Syroka is a consultant fochapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agriculturee World Bank, she worked as an analyst for Centrica Pic. one of the UK’S latgest utility companies, responsible for developing quantitative weather and gas risk management strategies for Centrica's trading and hedging operations. Joanna holds a PhD in Atmospheric Physics from Imperial College, Londo Chapter 1 Weather Risk Management for Agriculturen.alone. As a result the extreme summer heat appears to have contributed to a weak European GDP2 in the third quarter of 2003.While often such effectsChapter 1 Weather Risk Management for Agriculture
are reversible and short-term, the impact on the economy of a poor country can be significant and long lasting. Between 1997 and 2001, the average dachapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agriculturecentage point of GDP in direct damage from natural disasters can reduce GDP growth by half a percentage point in the same year4. Furthermore the humanitarian cost of weather-related disasters is also greater in rhe developing world: approximately 80%5 of all fatalities due to weather disasters from Chapter 1 Weather Risk Management for Agriculture1980-2003 occurred in the ''uninsured world”, comprised predominantly of low-income countries.However, even non-catastrophic weather events have a finChapter 1 Weather Risk Management for Agriculture
ancial impact. The U.S. Department of Commerce estimates that nearly one-third of the U.S. economy, or SI trillion6, is modulated by the weather and tchapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agriculturesuccess or failure of an initiative as a consequence of the weather. Like governments, businesses can face both demand and supply driven weather risk. Energy companies, for example, can be exposed to demand driven weather risk. For instance, in the event of a warmer than average winter, gas companie Chapter 1 Weather Risk Management for Agricultures, in particular those who deal with domestic customers, face a potential drop in gas sales as customers do not use as much gas as expected to heat thChapter 1 Weather Risk Management for Agriculture
eir homes. Therefore even if the company has adhered to prudent price risk management practices by protecting their sales margin from fluctuations in chapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agricultureen demand fluctuations. A supply-side example of weather risk can be found in the construction industry. Cold and wet weather conditions can impact construction progress as building materials have specific weather requirements, for example concrete cannot be poured in wet or below-freezing condition Chapter 1 Weather Risk Management for Agricultures. The contractor therefore must assume this supply-driven weather risk, which can significantly delay a construction project and result in hefty penaChapter 1 Weather Risk Management for Agriculture
lties if the project is not completed on-schedule. This recent excerpt from the Central New Jersey Home News Tribune illustrates the example:“The extechapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agriculture002, may not be completed until fall 2005 because of adverse weather conditions. The first phase of the project - to provide a River Road overpass and an extension of Metlars Lane from the John A. Lynch Sr. Bridge to Hoes Lane - had been scheduled to be completed by2Weather Risk Management Associati Chapter 1 Weather Risk Management for Agricultureon. 2004. "How climate changes affect the European Economy"3World Bank. 2004. “Anticipating Shocks in Low-Income Countries and Managing Debt Risk ThroChapter 1 Weather Risk Management for Agriculture
ugh Financial Instruments”4Auffret, p., 2003, “High consumption volatility: the impact of natural disasters", World Bank Working Paper 29625Thomas Loschapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agriculturech. Switzerland’Commerce Secretary William Daley, 1998.November. But lhe project's construction company, Slattery Skanska Inc. of Whitestone, N.Y.. hampered by a wet spring and summer and sustained cold weather this winter, has applied for a delay, according to Department of Transportation spokesman Chapter 1 Weather Risk Management for Agriculture Mike Horan."A lot of our projects have been hampered by the weather," said Horan. Horan explained that when the ground is frozen a proper bed cannotChapter 1 Weather Risk Management for Agriculture
be laid for roadways, and asphalt cannot be used until the temperature remains above freezing.... Horan explained that the application for a delay beychapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agricultureitionally been the scapegoat in business lor poor financial performance0. Annual reports, financial statements and press releases frequently contain declarations such as “fclooling degree days were 21 percent below last year's quarter and 16 percent below normal. The effects of milder weather compar Chapter 1 Weather Risk Management for Agricultureed with last year had a negative impact on FRIT of about $35 million for the quarter. “4 cents per share [decline] for lower gas deliveries due to warChapter 1 Weather Risk Management for Agriculture
mer weather in the fourth quarter of 2003”iữ, “[differences in heating demand caused by weather variations between years resulted in a $13 million marchapter 1: Weather Risk Management for Agriculture By Joanna Syroka11. Introduction to Weather RiskThe emerging weather risk market offers new risk ma Chapter 1 Weather Risk Management for Agricultureby the weather, while in 2002 the negative impact was SI 9 million. ”n and “Europe's performance continued to be impacted by unfavorable summer weather with volume down 12 percent in the third quarter and year-to-date volume down 6.5 percent. Given such examples it is not surprising that the financi Chapter 1 Weather Risk Management for Agricultureal community has begun to seek practical solutions to controlling the financial impact of weather. For example. Centrica Pic, one of the largest domesChapter 1 Weather Risk Management for Agriculture
tic gas supplier in lite UK. is one of a number of utilities that has chosen to manage its weather risk in order to “protect the company against variaGọi ngay
Chat zalo
Facebook