A Portfolio Approach to Cooperative Price Risk Management

作者: Ole Gjolberg , Marie Steen

DOI:

关键词: BusinessHedge (finance)Financial risk managementRisk poolAgricultureFinanceRisk managementPortfolioAgribusinessFutures contract

摘要: Agricultural producers face significant price risk. For some products, farmers may hedge this risk in well-functioning futures markets. several however, no such management instrument is readily available. We suggest that reduce by organizing cooperatives where members diversify creating "accounting" portfolios. The approach illustrated with data from the Dutch flower market, and practical problems connected to cooperative pooling agriculture are addressed.

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