Increase in milk price volatility experienced by Flemish dairy farmers:: A change in risk profile

Frankwin van Winsen; Erwin Wauters; Ludwig Lauwers; Yann de Mey; Steven Van Passel; Marc Vancauteren

Increase in milk price volatility experienced by Flemish dairy farmers: A change in risk profile

Frankwin van Winsen
, Erwin Wauters
, Ludwig Lauwers
, Yann de Mey
, Steven Van Passel
, Marc Vancauteren

Social Sciences

Research output: Contribution to conference › Poster

116 Downloads (Pure)

Abstract

This paper reports on the increased volatility in the milk price received by Flemish dairy farmers and its consequence on the risk profile of selected Flemish dairy farms. The volatility of the milk price has doubled since January 2007. It is suggested that this increasing volatility could have a significant impact on the risk profile of dairy farms. Indeed our results show that the risk profile is changing depending on the volatility and average price for milk. However this change is not very substantial compared to some other subsectors. Also we show that in our case study of selected farms that if the milk price volatility doubles an average milk price increase of about 12% compensates for the increased volatility on return on assets. Finally this paper demonstrated the importance of regarding risk and return together when making normative statements on the consequences of milk price volatility.

Original language	English
Publication status	Published - 2-Oct-2011
Event	EAAE 2011 Congress; Change and Uncertainty: Challenges for Agriculture, Food and Natural Resources - Zürich, Switzerland Duration: 30-Aug-2011 → 2-Sept-2011

Conference

Conference	EAAE 2011 Congress; Change and Uncertainty: Challenges for Agriculture, Food and Natural Resources
Country/Territory	Switzerland
City	Zürich
Period	30/08/11 → 2/09/11

Access to Document

Paper EAAE congress 2011 van Winsen et al Milk price volatilitySubmitted manuscript, 343 KB

http://ageconsearch.umn.edu/handle/115758

Cite this

van Winsen, F., Wauters, E., Lauwers, L., de Mey, Y., Van Passel, S., & Vancauteren, M. (2011). Increase in milk price volatility experienced by Flemish dairy farmers: A change in risk profile. Poster session presented at EAAE 2011 Congress; Change and Uncertainty: Challenges for Agriculture, Food and Natural Resources, Zürich, Switzerland. http://ageconsearch.umn.edu/handle/115758

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title = "Increase in milk price volatility experienced by Flemish dairy farmers:: A change in risk profile",

abstract = "This paper reports on the increased volatility in the milk price received by Flemish dairy farmers and its consequence on the risk profile of selected Flemish dairy farms. The volatility of the milk price has doubled since January 2007. It is suggested that this increasing volatility could have a significant impact on the risk profile of dairy farms. Indeed our results show that the risk profile is changing depending on the volatility and average price for milk. However this change is not very substantial compared to some other subsectors. Also we show that in our case study of selected farms that if the milk price volatility doubles an average milk price increase of about 12\% compensates for the increased volatility on return on assets. Finally this paper demonstrated the importance of regarding risk and return together when making normative statements on the consequences of milk price volatility.",

author = "\{van Winsen\}, Frankwin and Erwin Wauters and Ludwig Lauwers and \{de Mey\}, Yann and \{Van Passel\}, Steven and Marc Vancauteren",

year = "2011",

month = oct,

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note = "EAAE 2011 Congress; Change and Uncertainty: Challenges for Agriculture, Food and Natural Resources ; Conference date: 30-08-2011 Through 02-09-2011",

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van Winsen, F, Wauters, E, Lauwers, L, de Mey, Y, Van Passel, S & Vancauteren, M 2011, 'Increase in milk price volatility experienced by Flemish dairy farmers: A change in risk profile', EAAE 2011 Congress; Change and Uncertainty: Challenges for Agriculture, Food and Natural Resources, Zürich, Switzerland, 30/08/11 - 2/09/11. <http://ageconsearch.umn.edu/handle/115758>

Increase in milk price volatility experienced by Flemish dairy farmers: A change in risk profile. / van Winsen, Frankwin; Wauters, Erwin; Lauwers, Ludwig et al.
2011. Poster session presented at EAAE 2011 Congress; Change and Uncertainty: Challenges for Agriculture, Food and Natural Resources, Zürich, Switzerland.

Research output: Contribution to conference › Poster

TY - CONF

T1 - Increase in milk price volatility experienced by Flemish dairy farmers:

T2 - EAAE 2011 Congress; Change and Uncertainty: Challenges for Agriculture, Food and Natural Resources

AU - van Winsen, Frankwin

AU - Wauters, Erwin

AU - Lauwers, Ludwig

AU - de Mey, Yann

AU - Van Passel, Steven

AU - Vancauteren, Marc

PY - 2011/10/2

Y1 - 2011/10/2

N2 - This paper reports on the increased volatility in the milk price received by Flemish dairy farmers and its consequence on the risk profile of selected Flemish dairy farms. The volatility of the milk price has doubled since January 2007. It is suggested that this increasing volatility could have a significant impact on the risk profile of dairy farms. Indeed our results show that the risk profile is changing depending on the volatility and average price for milk. However this change is not very substantial compared to some other subsectors. Also we show that in our case study of selected farms that if the milk price volatility doubles an average milk price increase of about 12% compensates for the increased volatility on return on assets. Finally this paper demonstrated the importance of regarding risk and return together when making normative statements on the consequences of milk price volatility.

AB - This paper reports on the increased volatility in the milk price received by Flemish dairy farmers and its consequence on the risk profile of selected Flemish dairy farms. The volatility of the milk price has doubled since January 2007. It is suggested that this increasing volatility could have a significant impact on the risk profile of dairy farms. Indeed our results show that the risk profile is changing depending on the volatility and average price for milk. However this change is not very substantial compared to some other subsectors. Also we show that in our case study of selected farms that if the milk price volatility doubles an average milk price increase of about 12% compensates for the increased volatility on return on assets. Finally this paper demonstrated the importance of regarding risk and return together when making normative statements on the consequences of milk price volatility.

M3 - Poster

Y2 - 30 August 2011 through 2 September 2011

ER -