Dairy Farmers urged to take risk management seriously.

News from the dairy event is that dairy farmers are being urged to be more proactive about risk management and other factors impacting on their business.  A surprising 82% of milk producers surveyed by Barclays said they were actually reducing their risk management strategies despite the turbulent markets of the last few year. 

Agricultural specialist for Barclays, Euryn Jones, said the reason for this could be the fact that many farmers had measures in place or because some felt they had been 'caught out' in the past.

However the research also showed the type of risk management being undertaken which is predominantly the forward buying of inputs followed by fixed rate loans, fixed exchange of the single payment and a small number with fixed price selling contracts.

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