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Climate Derivatives – the Potential for Australian Agribusinesses

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Publication date
14/07/2010
Number of Pages
26
Language:
English
Type of Publication:
Other
Focus Region:
Asia and the Pacific
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Weather & Climate related
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Livestock
Author
Roger Stone, Peter Best, Olena Sosenko
Organization
University of Southern Queensland, Cindual Pty Ltd., Primacy Insurance

This presentation details climate risk management through climate indices because in the view of the author’s, Climate indices are useful for forecasting climate, crop yield and crop price; Seasonal climate/crop forecasting (SCF) should include evaluation of model errors; SOI derivatives could attract many wheat market participants in Eastern Australia; Climate Anomaly Indices (CAIs) can form a base for derivatives and insurance products around the World. Rainfall variability compared to other countries, historic drought data for Australia, and weather risk management generally for the specific case of Australian wheat farmers are discussed.