NZX plans to offer a market for trading whole milk powder futures.
New Zealand supplies around 40 percent of the global whole milk powder market and market volatility had led to demand for a risk management tool similar to other commodity markets.
“It’s a natural fit for New Zealand to host the trading of milk derivative contracts, and to meet the global demand for risk management tools in the dairy industry,” NZX Head of Traded Products Fiona Mackenzie said in a statement.
Last month it was rural media, this month it’s rural produce.
It might be a good move for shareholders, I don’t think it will have any benefits for farmers and wonder if it’s another example of what Cactus Kate calls: “making hay from a collection of other land-owners’ paddocks while the sun is still shining”.
Although, the sun isn’t shining on dairying at the moment.