THE nation's biggest cattle producer, Australian Agricultural Company, is leading a global lobbying effort to create a futures trading contract for beef trimmings, aimed at improving its capital management and minimising pricing risk.
AAco, together with Queensland's beef, sheep and grain lobbyist AgForce, wants to resurrect the boneless beef or trimmings futures contract, which fell out of favour and ceased operating in the 1990s.
AAco managing director David Farley said extremely volatile prices meant producers around the world needed to improvement management of price risks, The Australian Financial Review reports.
Trimming prices are up about 15 per cent over the past six months as drought hits US production and creates worries over supply.
By creating a global trimmings contract, AAco could fix prices and reduce the impact of mark to market valuations of its herd.
