WAREHOUSE RECEIPTS FUNCTIONING TO REDUCE MARKET RISK

Cereal production underlies the market risk to a great extent due to its elastic demand. Prices of grain have cyclic movements and significant decline in the harvest periods as a result of insufficient supply and high demand. The very specificity of agricultural production leads to the fact that agricultures are forced to sell their products at unfavourable conditions in order to resume production. The Public Warehouses System allows the agriculturers, who were previously unable to use the bank loans to finance the continuation of their production, to efficiently acquire the necessary funds, by the support of the warehouse receipts which serve as collaterals. Based on the results obtained by applying statistical methods (variance and standard deviation), as a measure of market risk under the assumption that warehouse receipts’ prices will approximately follow the overall consumer price index, it can be concluded that the warehouse receipts trade will have a significant impact on risk reduction in cereal production. Positive effects can be manifested through the stabilization of prices, reduction of cyclic movements in the production of basic grains and, in the final stage, on the country’s food security.


Variant title:
ROBNI ZAPIS U FUNKCIJI SMANJENJA TRŽIŠNOG RIZIKA
Editor(s):
Cvijanovic, Drago
Issue Date:
2014-06
Publication Type:
Journal Article
DOI and Other Identifiers:
UDC 338.43:63 CIP 33:63(497.11) ISSN 0352-3462 COBISS.SR-ID 27671 (Other)
PURL Identifier:
http://purl.umn.edu/175287
Published in:
Economics of Agriculture, Volume 61, Number 2
Page range:
347-365
Total Pages:
19
JEL Codes:
P32; P42
Note:
Original scientific paper
Series Statement:
Economics of Agriculture 2/2014
UDC: 339.13:633.1




 Record created 2017-04-01, last modified 2017-08-27

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