Dairy Risk Management Solutions

Dairy Risk Management Solutions by Numidia.

Over the past decades, we have seen dairy prices fluctuate wildly from time to time. And on the other hand, we see more and more customers and suppliers who are looking for stable pricing that offers certainty and that connects to contract agreements that they want to record and/or budgets that are set. Numidia offers help with the following solutions

Fixed forward pricing solutions

Numidia offers multiple solutions to fix the future price for the most common dairy commodities. In this way you will have the certainty that your contractual obligations to your customers or suppliers can be fulfilled or that your purchases or sales will fit within your budget.

Floating pricing solutions (dairy index linked)

Another option we offer is a price for a physical product, which is linked to one or more dairy indices that exist worldwide. In this way you have the certainty that you can buy or sell in line with the market. The link to the index also provides full transparency in the transaction we do with you.

Floating pricing solutions (dairy index linked) with a ceiling or floor

A combination of the above is also possible with us. We agree on a price that moves with the market based on an agreed reference index (floating price), but in the event of an extreme rise (when you buy) we build in a ceiling (or in the event of an extreme fall (when you sell) we build in a floor. In this way you pay (or get) a market conform price, but on the other hand you are insured against extremes in pricing.

Floating pricing solutions (dairy index linked) with flexibility to lock in forward price

With our floating pricing solutions we also offer our customers the flexibility to lock in their prices based on the daily settlements of the agreed referenced index (futures forward curve). In this way the supply is guaranteed and you can benefit from the volatility in the market to lock in your price daily at the moment it suits best.

Tailor-made hedging solutions

If one of the above solutions does not fully meet your needs, Numidia’s derivatives specialists can also work out a more tailor-made solution for you. Please contact us.