L’INTERFORM launching derivatives advisory and brokerage practice for dairy sector

L’INTERFORM, a dairy brokerage and trading company, is set to enter the trade of dairy-based financial derivatives, particularly futures contracts, on the European Energy Exchange (EEX) in Leipzig, Germany, by partnering with Kaack Terminhandel, an agricultural derivatives brokerage.

Now authorized by the Italian Securities and Exchange Commission (Consob) as the Italian branch of Kaack, L’INTERFORM will advise clients across the European Economic Area (EEA) on dairy derivatives trading.

Professional services that L’INTERFORM will offer include financial risk management and investment strategies. For dairy producers and transformers as well as industrial consumers of dairy products, the use of derivatives provides significant benefits in mitigating against price volatility.

Reaching an untapped network

L’INTERFORM’s head of risk management, Marc Perathoner, said hedging with derivatives will become more important for the European dairy industry as derivatives have been proven to be effective financial instruments in managing risk, as can be seen from years of experience in the US and New Zealand.

Wolfgang Sabel, managing director of Kaack, said the collaboration has the potential to reach a greatly untapped client network, grow the agricultural derivatives market in some of Europe’s most important agricultural geographies, and transform how the European dairy industry manages market price risk.

Italian-based L’INTERFORM is a fully-owned subsidiary of Gerber-Rauth.