DVT: "Volatile markets greatest challenge"
Dealing with increasingly volatile markets remains the central challenge for
companies in the feed industry, said Hans Roling, President of the German feed
millers' association DVT.
Current market trends show that, "the way downhill is often more difficult
than uphill," Roling said at the 8th DVT annual meeting last week in Wurzburg.
Volatility management within the sector should tackle the transition of a bull
market in raw materials into a better supplied market.
In addition, the
strong downward movement of the US dollar and the effect of speculative
positions in the markets on the short term has exacerbated the situation, said
the DVT president. This was the test run for - after the extraordinary price
increase - refocused tools and strategies for risk management and financing.
According to Roling strong reactions on the supply of cereals and
protein feeds show that market forces can mobilize production potentials at
short notice. However it would be too premature to call the end of the shortage
period, because global demand will grow at a rate of 0.2% of annual consumption.
Roling did not see alternatives to improved resource efficiency and greater
intensity in production.
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