1. 1Rabobank International Price Risk Management A presentation to the European Commission Pairs 5-6 th July 2004 Nigel Scott, Global Head Commodity Financing and Hedging African Cotton Producers

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5. Rabobank International Commodity price risk management solutions Tools in the Toolbox

6. 6Rabobank International Cotton price management tools Fixed Price –Futs / Swaps Price paid World market price Requires credit. Can be done for African price of cotton with Rabobank Cotton Swaps, limited liquidity NY hedges liquid with some basis risk

7. 7Rabobank International Cotton price management tools Price Insurance - Options Price paid World market price Does not require credit. World Bank / ITF CRM programme teaches and explains and help link with Price Providers

8. 8Rabobank International Proposal for a quick fix which is effective Price Insurance – 2 Options Price paid World market price Does not require credit. Fits with World Bank / ITF CRM programme EU – Catastrophe Option ITF – Opportunistic Option

9. 9Rabobank International Nigel Scott Executive Director, Global Financial Markets Nigel has been Global Head Commodity Price Risk Management and Structured Commodity Finance (OECD countries), two global teams engaged in the trading of physical and derivative commodity (Cotton, sugar, coffee, cocoa, etc) transactions and asset backed finance structures, for Rabobank International since 2001. He has worked for Rabobank International since 2000. Nigel started working for Cargill in Grain, NGFI and Vegetable Oil as a Merchant (1991- 1993) under Cargill’s Commercial Management Trainee scheme, working as a grain and NGFI commodity trader. He then became a Cotton Trader for Ralli Brothers and Coney, UK, and Hohenberg Brothers (1993-1998). Nigel then worked in Cargill’s Financial markets Platform as a Senior Structurer for Cargill Investor Services in 1998, and started a number of Soft Commodity Swaps derivatives markets, including cotton swaps. Nigel frequently acts as an Arbitrator as a member of the Liverpool Cotton Association, is a Director of the Liverpool Cotton Association and is a member of FOSFA and an arbitrator for the L.C.A.S. Nigel obtained a BSC (Hons) from Imperial College, London, in Microbiology. Biographies