Expect the unexpected: how a Canadian agriculture business found FX risk management success with OFX

Amid market fluctuations, harvest oscillations, and growing demand, this small business found FX stability with OFX. Discover how, with the support of their OFXpert, Danco Forage expanded and prepared for their future.

The Danco Forage business

Dan Pandolfo, the founder of Danco Forage, grew up on his family’s farm caring for animals and focusing on keeping the animals healthy. “I come from a ranch family, we were in livestock and agriculture for 57 years. Being livestock producers we learned how to grow all types of forage and we knew how to feed livestock in the cheapest and best ways possible,” Pandolfo said. It was from these beginnings that Pandolfo developed the idea to move away from raising livestock and instead focus on feeding them, “I had gained a lifetime of experience in animal nutrition and learned all the fundamentals of growing forage and how to use it efficiently.”

With this idea, the company, Danco Forage was born in 2013. Danco Forage specializes in producing hay alfalfa products and hay cubes for livestock and equines. This successful business soon began to grow, but with more and more customers, depending on unpredictable crop growth year-over-year, Pandolfo realized the need to keep his product prices stable. Just two years after the founding of Danco Forage, Pandolfo recruited OFX to be his partner in financial exchange.

Danco forage alfalfa cubes in a feed bin.
Danco Forage grew their alfalfa and hay cube livestock feed business internationally by hedging with OFX

Hedging and risk mitigation success

Through working with his OFXpert, Jeff, Pandolfo learned how to plan for fluctuations in harvests and in currency rates, “With Jeff’s help, I have come to understand market volatility and prepare my business for currency fluctuations.” Danco Forage utilizes OFX’s risk mitigation tools, like forward contracts, to help keep their product prices more stable than competitors, earning them repeat customers and consistent profits.” In my business, having consistent prices that don’t bounce around keeps my customers loyal. Jeff and the OFX team made that possible.”

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Why OFX is Danco Forage’s top choice

As Danco Forage’s business grew, with stable prices and loyal customers, Pandolfo’s OFXpert, Jeff, evolved their FX tools to meet the growing business needs, “He’s taken the time to understand my business and how it has changed over the years.” This attention to detail and ability to adapt alongside a small business is one of the key differentiators that Pandolfo recognized in OFX. “I’ve been approached by OFX’s competitors, but I always turn them down. The thing that keeps me with OFX is the great line of communication with Jeff, he listens to what I need and helps make it happen.” Pandolfo explained that the personalized service and assistance that OFX provides is why it is consistently his top choice of FX providers.

What started with a lifetime of farming knowledge, has quickly turned into a successful livestock nutrition brand led by a founder that saw the opportunities that his OFXpert could offer. Pandolfo said that he views OFX as another tool in his box that gives him the ability to keep the market stable, and that the trust he has in OFX helps him run a successful business. Could your business benefit from OFX’s tools? Find out today!

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IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.