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News 220 views last update:6 Aug 2012

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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