Dairy Hedging and Risk Management: The use of Futures and Financial Derivatives as a Means of Managing Price Risk Back to events list

Date: June 10th, 2019 at 09:00 to June 14th, 2019 at 18:00
Price:Standard €2500.0
Venue: Portview House, Thornecastle Street, Dublin 4: D04 V9Y9


Price volatility in the EU Dairy Market has increased significantly in recent years. This can be attributed to a number of factors which include a shift in EU Price support mechanisms and the increased globalisation of the dairy industry. Due to the increased volatility Dairy Futures Markets and other Financial Derivatives have been developed to help the Dairy Industry manage its price risks more effectively. The successful use of Futures and Financial Derivatives as a risk management tool requires a level of knowledge and experience which is new to many in the sector.


Target Audience:

This workshop is designed for Dairy industry professionals who are responsible for managing prices within their organisation, including: Finance Professionals, Procurement and Sales Professionals, Traders, General Management and Board Representatives. The aim of this workshop is to provide such professionals with an in-depth understanding of the structure and function of the Risk Management tools available as well as providing them with an understanding of the Risk Management Policies, Procedures and Strategies employed by leading international companies active in this sector.


Workshop Team and Delivery:

This workshop has been designed and will be delivered by a highly experienced team of academic and industry personnel, and will be delivered by experts from Cork Institute of Technology and INTL FCStone, together with guest lecturers from the field of risk management. The workshop has been designed to provide academic theory, statistical modelling as well as provide commercial and strategic insights. It will be delivered through a combination of interactive classroom and computer based laboratory sessions.


Workshop Content:

•Introduction to Dairy Futures and Hedging •Introduction to Exchanges, Clearing House, Brokers, Dairy Futures Contracts and Specifications •Understanding Regulations and Compliance •Introduction to Statistics •Modelling Price Relationships: Correlation and Regression Analysis •Margin and Cashflow Analysis •Trader Hedge Scenarios and Examples •Processor/Co-Op Hedge Examples and Strategies •Establishing an Internal Risk Management Policy •Guidelines on Establishing Internal Controls •Live Trading Platforms and Executing Sample Trades •Risk Modelling - Net Position Reports and Value at Risk (VaR) •Review Physical Positions and Financial Market to Identify Hedging •Market Development and Challenges •Dairy Market Outlook



Successful completion of this course will lead to a CIT single subject certification award in STAT8012 Dairy Derivatives. The award represents 5 credits at level 8 of the NFQ framework.



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