Managing Dairy Volatility

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Market, currency and revenue volatility define the challenging context in which businesses in the dairy supply chain have to operate.

The low market prices of the current cycle are continuing for longer than in previous cycles, and ongoing market imbalance is impacting businesses throughout the supply chain.

Those involved in managing dairy businesses intuitively monitor prices, which, although important, are only part of the issue in managing dairy businesses. Ultimately, the business challenge is to manage margin, and this Conference will tease out some of the issues around managing margin in the context of the uncertainty and risk of volatility.

Dairy UK and the Ulster Farmers’ Union have organised this Conference to provide an opportunity for speakers and participants, from different parts of the dairy supply chain and from different regions of the world, to come together to explore a number of key aspects associated with managing margin. Although volatility is not unique to the dairy industry, and mechanisms are available for minimising the uncertainty and risk associated with volatility, the purpose of this Conference is not to rehearse the potential use of these tools by dairy businesses. Rather, the purpose of the Conference is threefold:

To explore the role of government policy in helping dairy businesses to manage margins, by comparing policy approaches in EU and USA.

To gain insight into how dairy farming and dairy processing businesses are being managed in the current environment.

To look at some options that could assist dairy businesses manage margin.

The Conference will be chaired by Kevin Bellamy, who is Rabobank’s Global Dairy Strategist.

The programme for the event is as follows:

08.30 Registration

09.00 Chairman’s opening remarks - Kevin Bellamy, Global Dairy Strategist, Rabobank

Session 1: Industry Perspectives

09.10 A view from the USA - Jim Mulhern, President and Chief Executive Officer, National Milk Producers Federation, USA

09.50 A view from Europe - Dr David Dobbin CBE, Group CEO, Dale Farm

10.20 Panel Discussion with Chairman

Session 2: Business Approach to Uncertainty and Risk

11.15 Coping with volatility when managing a farm business - Steen Nørgaard Madsen, Chairman, Danish Dairy Board

11.45 Coping with volatility when managing a dairy processing business - Jay Waldvogel, Senior Vice President, Strategy and Global Development, Dairy Farmers of America

12.15 Panel Discussion with Chairman

Lunch

Session 3: Risk and Margin Management

13.30 Dairy markets to the end of the decade - Robbie Turner, Head of European Markets, Rice Dairy International

13.55 The US experience of creating a market for dairy futures - Peter Blogg, Senior Director, CME Group.

14.20 Long term sustainable financing in the sector– role of EIB - Frank Lee, Head of Financial Instruments Advisory Division, European Investment Bank

14.45 Panel Discussion with Chairman

15.15 Chairman’s concluding remarks and close - Kevin Bellamy, Rabobank

To register for the conference visit: www.dairycouncil.co.uk (Pre-registration and payment is required)

The conference has been sponsored by Danske Bank, Devenish Nutrition, Fullwood, NIE Networks and Simple Power.