Robbie Turner, Head of European Markets, Rice Dairy International video interview with www.pickingalpha.com.
The global dairy market has been relatively stable up until 2007, when the first price shock turned everything upside down. That was China who entered the market shaking it to become a new market mover. Today this rather young and highly volatile market presents new challenges and opportunities for the producers on every step of the production chain. Currently USA, Europe and New Zealand are three main centers of the dairy trade with distinctive customized trading instruments. In this new circumstances hedging some time ago being not a key instrument for success getting more and more important ingredient for the food enterprise functioning and profitability.
Dairy market is a complicated market, of course it depends on other markets but on a contrary to some other of them it has a lot of fluctuations, says Robbie Turner, Head of European Markets, Rice Dairy International. In his video interview with us, he comments on current volatility trends in the market, geographical risks and hedging dairy risks in chocolate production. Explaining this rather complex market, he still insists that an experienced trader can lock in the price and lock in a margin. Robbie Turner considers globalization as one of the challenging aspects of the market for a smaller company or farmer, but at the same time properly approached geographical risks can be managed well to expand to new frontiers and territories. Using hedging on every step of the production and distribution producer can significantly preserve the business from unexpected price moves and world market unpredictability expecting him around the corner. Dairy Rice International consults on every step of the dairy production chain from farms to the end users, keeping offices both in USA and UK. In the video we discuss dairy risks as part of the chocolate production.