AHDB embarks on new initiative to tackle market volatility

AHDB embarks on new initiative to tackle market volatility

AHDB has gathered the UK industry to tackle volatility in agricultural commodities markets.

Experts from the industry joined in Westminster at the launch of the AHDB Volatility Forum this week to seek solutions for businesses affected by market uncertainty across agricultural supply chains.

The event brought together farmers, processors, retailers and trade associations.
Forum members had the task of maintaining a long-term focus on volatility management and to provide a knowledge exchange hub between the industry, supply chain, academics and policy makers.

At the event, AHDB lead analyst Jack Watts discussed the topics of forward contracts, formula pricing, derivatives, cooperation and integration, strategic business and government-backed.

He explained: “There is unlikely to be a one-size-fits-all solution to managing volatility and it certainly won’t happen overnight. Commodities markets are both highly complex and delicately balanced as we have seen to some extremes across agricultural sectors in recent times.

“Like the markets, interest in volatility management has been cyclical. In times of high prices, businesses tend to be in a better position to weather market impacts and the level of interest wanes as a result.

“AHDB is in a unique position to bring together and provide the industry with a sustained focus on finding practical solutions to volatile markets through the good times as well as the bad.”

As part of the event, forum members were asked to prioritise areas of work to shape the group’s focus. The top priority was identified as helping the industry to understand the commodity cycle better and it’s impact on agricultural business strategy. Shortly behind was the need to upskill the industry in its approach to assessing risk likelihoods, impacts and prioritisation.

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