Brian Rice discussed dairy price risk management with the NZ Dairy Exporter ahead of his presentations at Fonterra’s Grow Your Mind Seminars (GYMS), which will be held eight locations in New Zealand from April 11 to 15. From the article:
United States-based dairy analyst Brian Rice has some candid observations for Fonterra farmers – points that in the nicest possible way he has to be blunt about.
They’re points he hopes will shed some light and offer some solutions to what has fast become a serious issue for Kiwi dairy farmers who’ve found themselves painfully exposed to global dairy commodity volatility – price risk management.
“Number one on the list is that Fonterra does not manage your milk price risk for you – that’s on you and that’s the way it is world over. No co-ops manage milk price risk for their farmers.
“What they do though is offer tools for them to use but it’s always got to be the member’s choice to use them or not,” he says.
Rice understands New Zealand dairying having visited several times before, through his experience is working with NZ-based clients and brokering trades on NZX’s commodity dairy futures market.