How can partnering with Attara help your members navigate price risk more confidently?
Milk markets have rarely felt as unsettled as they do today. Milk price volatility, rising input costs, and shifting market dynamics are putting increased pressure on farmers already struggling with tight margins. It’s no wonder many cooperatives are grappling with the same question: how can we help our members protect their margins without second-guessing the market?
One new and increasingly effective solution is to partner with Attara. Since 2011, we’ve supported businesses across agriculture, fuel, and metals in managing commodity price risk. We’re now extending our expertise to dairy organisations that want to strengthen member resilience and increase the value they provide.
What is hedging, and why is it important in the dairy industry?
Volatility has become a defining feature of the dairy industry. One month, prices may be stable and comfortable; the next, a sudden dip can wipe out margins. Various costs, including feed contracts, energy bills, and transport costs, can put pressure on businesses already operating on tight budgets.
Commodity hedging offers a practical and proven way to stabilise prices. Rather than trying to predict where the market is heading, farmers and processors can use hedging tools to lock in parts of their future costs or revenues. It’s a simple idea, but a powerful one, providing greater stability, more confidence in planning, and fewer sleepless nights watching price fluctuations.
Historically, hedging has been primarily associated with large corporations. However, the underlying principles are quite simple. In practice, smaller producers often feel the benefits most acutely, as a single price swing can have such a significant impact on cash flow.
How will partnering with Attara benefit your members?
By offering your members professional hedging support, you’ll equip them with a resource many small farms and processors have never had access to before. Here are some key advantages:
- Practical protection against unexpected price swings
- More predictable margins, which aid in investment planning
- The ability to make decisions based on insight rather than instinct
- Access to specialised market expertise and brokerage support explicitly tailored for agriculture
With our assistance, your members can focus on running efficient, productive dairy operations, while we help protect the financial foundations that support them.
What’s in it for your organisation?
A partnership with Attara offers more than just benefits for your members; it also provides advantages for your organisation.
Dairy cooperatives and producer groups generate additional revenue through commission or introduction fees. They also strengthen their membership proposition by offering a service that directly addresses one of the sector’s most significant challenges: volatility.
And beyond that, there are opportunities to build together. We regularly collaborate with partners on webinars, joint articles, workshops, and industry events – initiatives that increase engagement and elevate the visibility of both organisations.
What does a partnership with Attara look like in practice?
Our approach is built on transparency, education, and collaboration. We don’t believe in complexity for the sake of it. Instead, partners can expect:
- Clear, practical tools that help members understand and manage price risk
- Guidance tailored to the realities of different farm sizes and processing models
- A focus on long-term resilience, rather than one-off transactions
A more stable membership base ultimately creates a stronger, more resilient organisation as well.
Ready to help your members achieve price stability?
If you’re looking for ways to help your members protect their margins without having to second-guess the market, Attara can help.
To learn more, download our step-by-step guide on how you and your members can stabilise prices and build resilience.
