Dairy risk management solutions

Since the beginning of this century, dairy price volatility has increased tremendously. This creates a challenge and significant risk for companies wanting to manage their business sustainably. Both our buyers and dairy products suppliers profit from price stability so we have developed a variety of tools to manage their price risk exposure.

Fixed forward pricing

The best way to stick to your budget or to fix your margins is to agree on a forward price for your input or output products. Interfood can help you fix future prices for all main dairy commodities, either by securing physical supply or setting up a financial swap. We can customize these to your specific needs and even provide long-dated prices for products that have no active forward contracting marketplace.

Floating index pricing

Sometimes, securing supply is more important than outperforming the market. We can offer you physical product linked to almost any active dairy quotation in the world, add specific discounts and premiums, or even combine quotations to match your requirements. Floating index exposure allows you to benefit from market dynamics and ensures you always buy or sell products at actual market prices.

Custom-made hedging strategies

A standard solution is not always sufficient and while you’ll need to secure supply at a certain price, you may want to benefit from market moves. Interfood can provide various custom-made hedging solutions that make use of price floors and/or caps combined with the option to settle financially or get physical supply at pre-agreed price levels.

Dairy derivatives for customers

You’re a buyer of dairy ingredients? Check out this explanatory video of our risk management solutions for customers.

Dairy derivatives for suppliers

You’re a seller of dairy ingredients? Check out this explanatory video of our risk management solutions for suppliers.