VOLATILITY IS HERE TO STAY
Since the mid 2000s dairy commodity prices have seen moves of over USD $2000/MT in a year 6 times, driven by a variety of unforeseen market impacts: weather and geopolitical events, new sources of demand and supply, and changes in currency markets and macroeconomic conditions.
This sort of volatility causes havoc for both end users and manufacturers alike: missed budgets, constantly changing plans and an inability to invest with confidence among them.
AUSFINE RISK MANAGEMENT SERVICES
Ausfine is able to deliver price risk management tools that give more price certainty to both end users and dairy processors alike – examples include:
Long term fixed price contracts
Minimum (for sellers) or Maximum (for buyers) price contracts, which lets you know your “worst case” scenario while letting you buy “at market” if prices move in your favour
Collar price contracts, which gives you price certainty within a range in a cost effective manner
A range of other tailored tools are also available.
GOOD REASONS TO MANAGE YOUR DAIRY PRICE RISK
Protect margins and budgets
Stabilise cash flow and supply chain
Focus on what you can control (your operations), manage what you can’t (market prices)
Price certainty for investment and growth