Hedging strategy of bulk agricultural products supply chain

With the continuous development of economic globalization, the price risk of bulk agricultural products will continue to increase, which may bring huge losses to enterprises. To address the above problems, this paper proposes to use the hedging function of the futures market to reduce price risk, and considers three hedging strategies, such as manufacturer hedging, supplier hedging and manufacturer-supplier hedging, respectively, from the perspective of the overall supply chain, and establishes a game model for the decision making of upstream and downstream participants under each strategy. On this basis, the impact of the change in agricultural price on the hedging strategy is revealed by solving and analyzing the three decision models using dynamic game theory. The results of the study show that the higher the bullish price trend of agricultural products, the highest overall profit of the supply chain under the manufacturer's hedging strategy, and the profit of the whole supply chain members can be optimized. There is also a more meaningful finding that the profits of manufacturer and supplier are more stable under manufacturer-supplier hedging strategy.