A derivative to hedge against food price volatility

Like cholesterol, derivatives also come in a good version and a bad version. Like dynamite, they can be useful when used well and cause harm ('weapons of financial mass destruction', Warren Buffett called them) when used incorrectly. The World Bank yesterday announced the availability of a risk protection financial product (aka derivatives) to hedge against the volatility of food prices. This volatility (read sudden increases) affects goods whose prices are very visible and constitute a large outlay for household budgets for poor countries: these prices can therefore negatively influence inflation expectations in rich countries and even trigger riots and riots in poor. Of course, these derivatives are available to food-producing companies, which can thus hedge against the prices of wheat or coffee. Large companies already make use of these tools, but cooperatives and small businesses, especially in emerging countries, find it difficult to use them. The credit necessary to implement these instruments will be provided by the 'private arm' of the World Bank – the International Finance Corporation – and by JP Morgan.
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22945434~pagePK:34370~piPK:34424~theSitePK:4607,00.html
http://www.ft.com/intl/cms/s/0/caf1be36-9c2f-11e0-acbc-00144feabdc0.html?ftcamp=rss&ftcamp=crm/email/2011621/nbe/AsiaMorningHeadlines/product#axzz1PyCSFZsX