Milk sector getting ready for policy changes

Milk index

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The target of the study is to build an index to measure the effects of price volatility on the economics of milk production in Finland. The index is based on standardized gross margin and price statistics which enable an automatic updating of the index and a short delay in producing it.


The main result of the study is an index which indicates the effect of exogenous factors on the margin of milk production. The index helps the dairy sector in bringing into use the risk management instruments of the EU and serves other risk management insurance products.