Customised commodity derivates; the case of natural gas in the Dutch horticulture sector

Financial banks in the Netherlands are developing customised derivatives for the agriculture industry to decrease the volatility of input or output prices. These derivatives can also be attractive for Dutch agriculture producers because a big part of the business risk in agriculture is caused by fluctuating commodity input and output prices. This report provides insight on how customised derivatives can be constructed and what the advantage is for a farmer. This insight is given by a simulation of the natural gas market for horticulture producers in the Netherlands