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## 4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

## Risk exposures and responses (continued) 

## (ii) Commodity price risk (continued) 

At the reporting date we had the following commodity price exposures on forward sales and purchase contracts that are not designated as cash flow hedges: 

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## (iii) Foreign currency risk 

We also have transactional currency exposures (refer note 20)� Such exposure arises from sales by the wholesale beef segment in currencies other than in Australian dollars� We undertake forward sales in foreign currencies� All forward sales are covered with foreign exchange contracts to coincide with the expected receipt of foreign funds spread over the year� 

Forward currency contracts must be in the same currency as the sold item� It is our policy not to enter into forward contracts or foreign exchange options until a firm commitment is in place� 

At 31 March 2013 substantially all foreign currency receivables were covered by forward currency contracts or foreign exchange options� The following sensitivity is based on the foreign currency risk exposures in existence at the reporting date� 

At 31 March 2013, had the Australian Dollar moved, as illustrated in the table below, with all other variables held constant, post tax profit and equity would have been affected as follows: 

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The movements in profit are due to the movement in foreign exchange rates resulting in the movement in fair value of foreign exchange contracts and trade receivables� We believe the reporting date risk exposures are representative of the risk exposure inherent in the financial instruments� 

