Risk management and market information support activities

Summary

​MLA's risk management program (and MLA's role in risk management) centres around ensuring that risk management products, market information and advisory services were available; and that users are sufficiently motivated and equipped with the knowledge and expertise to harness opportunities for controlling price and/or supply.
Program objectives included:
1. Help to research and facilitate the development and uptake of alternative cattle and beef risk management products.
2. Assist the development and provision of the market information and advisory services required to stimulate adoption of risk management.
3. Foster cattle supply chain marketing training and education.  
This program aimed at developing a forward thinking mindset within the industry, through activities promoting uptake of the Australian forward cattle trading standards and increasing the knowledge of the different forward contracting tools and their use.  
Managing supply was a key component of MLA's risk management program. Education provided was practical, and raised the understanding of how to utilise market information (including basis) and the available risk management tools to harness marketing opportunities, whether or not a hedging strategy is involved.
Importantly, training was delivered through supply chains or other influencers such as consulting groups and stock agents and to build on existing business practice.
Programs included the use of Confident livestock marketing workshops that provided participants in the cattle industry with an insight into where to find market information, how to interpret this information and, importantly, how to use this information to assist in making cattle buying and selling decisions.
The MLA/SFE cattle futures contract was delisted in 2009.