A Portfolio Approach to Cooperative Price Risk Management

Agricultural producers face significant price risk. For some products, farmers may hedge this risk in well-functioning futures markets. For several products, however, no such risk management instrument is readily available. We suggest that farmers reduce price risk by organizing cooperatives where members diversify by creating "accounting" portfolios. The approach is illustrated with data from the Dutch flower market, and some practical problems connected to such cooperative risk pooling in agriculture are addressed.


Issue Date:
1999
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/46374
Published in:
Journal of Cooperatives, Volume 14
Page range:
21-29
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-25

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