On 31 March 2015, milk quotas, originally initiated under the EU’s Common Agricultural Policy, have expired, leading to liberalisation of production and potential volatility in the European dairy industry.
In addition, global demand for milk is increasing while supply chains are unpredictable.
Within this context, the new contracts provide a clear response to the high volatility in the dairy sector. They offer players in the dairy industry a way to manage their risk and protect their margins across the entire dairy complex.
Developed in close cooperation with the dairy community, the new futures and options contracts have been designed to meet the needs of market professionals who want to use appropriate price hedging tools.
Euronext is the pan-European financing centre enabling investors to benefit from being able to trade, clear and settle in a uniform way across various jurisdictions whilst also accessing a broad and deep pool of liquidity. Now also trading dairy commodities.