@article{Ada:126106,
      recid = {126106},
      author = {Ada, Tim and Malcolm, Bill and Williams, John},
      title = {A Survey of Price Risk Management in the Australian Cotton  Industry},
      journal = {Australasian Agribusiness Review},
      address = {2006},
      number = {1673-2016-136788},
      series = {Volume 14},
      year = {2006},
      abstract = {Over 95 per cent of Australian cotton producers have  attempted to manage price risk at some time, using a range  of management strategies.   Nearly 60 per cent of  Australian cotton producers surveyed in this study stated  that price risk management had a positive effect on their  farm business.  Findings from the study suggest that price  risk management is only one of a suite of business  management tools. Strategic use of price risk management  tools can have positive outcomes. A lack of understanding  of price risk management and, more specifically, recent  currency exchange losses and high production risks were the  key contributing factors for the 21 per cent of the  surveyed producers who stated that price risk management  had a negative impact on their business.Approximately 10  per cent of the cotton producers surveyed operated dryland  production systems.  These producers often incurred a  broader range of production risks, and the resulting  production uncertainty inhibited effective use of some  price risk management strategies. One in four of the  surveyed cotton producers had an agriculture-related  tertiary qualification, yet few (around five per cent) had  undertaken any form of specialist price risk management  training.

The primary conclusion from the study is that  the uptake and effectiveness of price risk management in  the Australian cotton industry is constrained by the extent  of producer experience, confidence and understanding of  price risk management principles and processes.},
      url = {http://ageconsearch.umn.edu/record/126106},
      doi = {https://doi.org/10.22004/ag.econ.126106},
}