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Financial Instruments | 9 Months Ended
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Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments | 21. Financial Instruments Inherent in our business is the risk of matching the timing of our purchase and sales contracts. The prices of food and feed commodities (e.g., soybeans, wheat, corn, etc.) and carbon offset units we buy and sell are based on a constantly moving terminal market price determined by various exchanges (e.g., CME, Chicago Board of Trade ("CBOT") and Dalian Commodity Exchange ("DCE"), etc.). Were we not to hedge such exposures, we could be exposed to significant losses due to the continually changing commodity prices. We use commodity futures contracts to manage our exposure to this commodity price risk. It is generally our policy to hedge such risks to the extent practicable. We enter into hedges to limit our exposure to volatile price fluctuations that we believe would impact our gross margins on firm purchase and sales commitments. As an example, if we enter into fixed price contracts with our suppliers and variable priced sales contracts with our customers, we will generally enter into a futures contract to sell the commodity for future delivery in the month when we expect the commodity price to be fixed according to the sales contract terms. We repurchase this position once the pricing has been fixed with our customer. If the underlying commodity price increases, we suffer a hedging loss and have an unrealized loss on derivative contracts, but the sales price to the customer is based on a higher market price and offsets the loss. Conversely, if the commodity price decreases, we have a hedging gain and recognize an unrealized gain on derivative contracts, but the sales price to the customer is based on the lower market price and offsets the gain. In accordance with FASB ASC 815, Derivatives and Hedging, we designate these derivative contracts as fair value hedges and recognize them on our balance sheet at fair value. We also recognize offsetting changes in the fair value of the related firm purchase and sales commitment to which the hedge is attributable in earnings upon revenue recognition, which occurs at the time of delivery to our customers. The potential for losses related to our hedging activities, given our hedging methodology, arises from the exchanges for our commodity hedges or customer defaults. In the event of a customer default, we might be forced to sell the commodities in the open market and absorb losses for the commodities. Our results of operations could be materially impacted by any counterparty or customer default, as we might not be able to collect money owed to us and/or our hedge might effectively be cancelled. We use hedges for no purpose other than to avoid exposure to changes in commodity prices between when we buy a shipment of commodities from a supplier and when we deliver it to a customer. Our derivatives are not for purposes of trading in the futures market. We earn our gross profit / (loss) margin through our business operations and not from the movement of commodity prices. The Company’s assets and liabilities related to unrealized gains or losses on fair value hedges measured at fair value on September 30, 2025 and December 31, 2024 are as follows:
Derivatives designated as fair value hedges | Balance Sheet Location |  | September 30, 2025 |  | December 31, 2024
Asset (liability) derivatives: |  |  | $’000 |  | $’000
Derivative contracts | Other current liabilities |  | — |  |  | (60) |
Total |  |  | — |  |  | (60) |
The table below summarizes the realized gain or (loss) on the Company’s derivative instruments that are designated as fair value hedges and their location in the Unaudited Condensed Consolidated Statement of Operations and Other Comprehensive Income / (Loss):
|  |  | Three Months Ended September 30,
Derivatives in hedging relationships | Location of Gain / (Loss) Recognized |  | 2025 |  | 2024
|  |  | $’000 |  | $’000
Derivative contracts | Cost of goods sold |  | — |  |  | 5,461 |
Total |  |  | — |  |  | 5,461 |
|  |  | Nine Months Ended September 30,
Derivatives in hedging relationships | Location of Gain / (Loss) Recognized |  | 2025 |  | 2024
|  |  | $’000 |  | $’000
Derivative contracts | Cost of goods sold |  | (31) |  |  | 11,995 |
Total |  |  | (31) |  |  | 11,995 |
From time to time we may enter into forward purchase and sales contracts that do not meet the definition or qualify for hedge accounting. Forward purchase and sales contracts are derivatives that were entered into to purchase or sell goods at a later date at a fixed or determinable price for a specific period. Forward sales contracts are recognized on the balance sheet at the value of the contract and the difference in the fair value and derivative liability is recorded as an unrealized gain or loss on derivative contracts. For forward sale contracts, if the underlying commodity price increases, we suffer a mark to market loss and have a derivative liability. Conversely, if the commodity price decreases, we have a hedging gain and recognize an unrealized gain on derivative contract. The difference in the fair value of the forward purchase contract and the contractual amount is recorded as an unrealized gain or loss on derivative contracts through cost of goods sold. As part of our business we also engage in the purchase, sale and distribution of food and feed products. If we do not have a matching sales contract related to such products, (for example, any commodity products that are unsold in our inventory), we have price risk that we currently do not or are unable to hedge. As such, any decline in pricing for such products may adversely impact our profitability. The follow table sets forth the fair value of derivatives not designated as hedging instruments as of September 30, 2025 and December 31, 2024:
Derivatives | Balance Sheet Location |  | September 30, 2025 |  | December 31, 2024
Asset (liability) derivatives: |  |  | $’000 |  | $’000
Derivative contracts | Other current assets |  | — |  |  | 18,602 |
Derivative asset | Other current assets |  | — |  |  | 93,520 |
Derivative liability | Other current liabilities |  | — |  |  | (92,094) |
Total |  |  | — |  |  | 20,028 |
The table below summarizes the realized g ain or (loss) on the Company’s derivative instruments that are not designated as hedges and their location in the Unaudited Condensed Consolidated Statement of Operations and Other Comprehensive Income / (Loss):
|  |  | Three Months Ended September 30,
Derivatives | Location of Gain / (Loss) Recognized |  | 2025 |  | 2024
|  |  | $’000 |  | $’000
Derivative contracts | Cost of goods sold |  | — |  |  | (1,718) |
Total |  |  | — |  |  | (1,718) |
|  |  | Nine Months Ended September 30,
Derivatives | Location of Gain / (Loss) Recognized |  | 2025 |  | 2024
|  |  | $’000 |  | $’000
Derivative contracts | Cost of goods sold |  | (18,633) |  |  | (2,969) |
Total |  |  | (18,633) |  |  | (2,969) |
See Note 18 – Commitments and contingencies for additional information.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/825/tableOfContent + Details
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