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Attainment of marketability of a web-based hedge accounting platform for dairy farmers (KUHdo-Trading)

Project


Project code: 281DT04X21
Contract period: 01.09.2021 - 31.08.2023
Budget: 699,932 Euro
Purpose of research: Applied research
Keywords: milk, corporate management, market, quality management, human nutrition, start-up, business administration, competitiveness

KUHdo GmbH is a start-up company that aims to enable dairy farmers to investments in sustainable production methods by strengthen their plannability of their business, dealing with in strongly fluctuating milk prices. The energy and commodity futures exchange EEX provides futures contracts for various dairy products - most recently they released the so-called liquid milk contracts. The buyer of the contracts are usually professional retailers, the food processing industry or global trading companies with corresponding access to the capital market. The low trading intensity of milk contracts on EEX indicates that farms are not taking the advantages of price hedges. KUHdo's core divers core team with divers experience in agriculture and finance KUHdo has analyzed the reasons for the absence of producers. Similar to small and medium-sized enterprises (SMEs), various resons are responsible for difficult market access to the futures trading for agricultural enterprises. With "KUHdo Trading", KUHdo would like to revolutionize this difficult market access as a consequent continuation of the previous and existing training and information offer. To this end, the existing KUHdo web app (in future KUHdo Education) is to be supplemented with a "trading portal" ("KUHdo Trading"). KUHdo Trading wants to enable milk producers to secure milk prices directly, simply and individually by means of scaled commodity futures with reference to the stock exchange. The business model should - despite fluctuating prices - enable agriculture to invest in more sustainable production methods by creating planning security.

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Excutive institution

KUHdo GmbH

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