date:Sep 05, 2012
to come to grips with.
Price fluctuations
Hedging is widely used as a tool to manage price fluctuations in areas such as foreign exchange, equities and energy. And yet they have shown far lower price fluctuations than the dairy sector, said Lancaster.
Despite the fact that prices have fluctuated by as much as 40% in the dairy sector since 2007, hedging of commodities such as butter and SMP has been relatively limited within Europe, he added.
We have moved from a period of extreme stability