Futures exchange almost a reality

摘要

"It is potentially a very useful way of managing price volatility and helping business planning," John Alien, managing partner at Kite Consulting says. "For milk buyers dealing with multinationals and retailers on long-term, fixed-price contracts, there are immense benefits, as milk is such a large element of their costs - 80% in the case of cheese. Being able to fix a proportion at a set price gives a lot more certainty. But I struggle to see how it will work at the farmer level."