Research on the Development Experience of the Dairy Futures Market and Exploring the Feasibility of the Dairy Market in China

Chihin Huang

doi:10.54254/2754-1169/2024.17790

Chihin Huang^*

Shanghai Hong Qiao International School, Shanghai, 200000, China

^* Corresponding author: zixuan20061009@163.com

Published: 9 December 2024

DOI: https://doi.org/10.54254/2754-1169/2024.17790

Abstract

With the dairy business across the world increasingly growing, a study of how Europe and the US established their dairy futures markets helps to understand whether they will be viable in China. For both of these regions, there are well-established dairy futures markets that play an important role in price risk management for both producers and buyers. This will help us to anticipate what we might face as challenges or opportunities when we introduce such a market in China. The significance of European and American markets is reflected by the various roles played by dairy futures. It highlights the necessity of strong infrastructure, efficient legal frameworks and regulations, vibrant market participation, and information dissemination that is transparent and efficient. It has been a stabilizing element for transparency in European dairy future markets. Various initiatives introduced by the EU have supported the development, including standardization of contract terms and provision of adequate liquidity. In contrast, the United States has multiple exchanges that trade dairy futures where each exchange trades different kinds of dairy contracts. This variety allows for individualization, but it also hinders uniformity in market operations and limits liquidity. In conclusion, we discuss the significance of developing strong infrastructures, effective legal frameworks, and regulations, encouraging active market participation, as well as ensuring transparency and efficiency in information dissemination. Lastly, through an examination of these European and American experiences coupled with the main ingredients underlying their achievements, we can support China to have a robust dairy industry future market.

Keywords: Dairy futures , Market Participants , Trading Strategies , Infrastructure Construction , Transparency

AEMPS Vol.125

ISSN (Print): 2754-1169

ISSN (Online): 2754-1177

ISBN (Print): 978-1-83558-755-3

ISBN (Online): 978-1-83558-756-0

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Article Information

Received: 7 August 2024

Published: 9 December 2024

DOI: https://doi.org/10.54254/2754-1169/2024.17790

Article Type: Research Article

Cite this article

Huang,C. (2024). Research on the Development Experience of the Dairy Futures Market and Exploring the Feasibility of the Dairy Market in China. Advances in Economics, Management and Political Sciences,125,77-83.

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About this Volume

Volume Title: AEMPS Vol.125

Part of Series: Advances in Economics, Management and Political Sciences

ISSN: 2754-1169 (Print) / 2754-1177 (Online)

Article Information

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