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Leading Dairy Cooperative Replaces Risk Management System with CTRM Platform
MARKETS: AGRICULTURE | COMMODITY: MILK, CHEESE, WHEY | CLIENT: DAIRY COOPERATIVE
Leading Dairy Cooperative Replaces Risk Management System with CTRM Platform
MARKETS: AGRICULTURE | COMMODITY: MILK, CHEESE, WHEY | CLIENT: DAIRY COOPERATIVE

Situation

A leading dairy cooperative was utilizing an outdated risk management system that was extremely expensive and difficult to maintain. Due to system limitations, a large portion of the work was being done manually in error-prone spreadsheets because the system lacked the capabilities to manage daily business processes accurately.

As a result, the cooperative was often burdened with time-consuming reconciliations and needed a solution to streamline and automate its operations.

Solution

The dairy cooperative assessed the AEGIS cloud-based CTRM platform and ultimately decided to replace the outdated legacy system that was impacting its critical business functions.

The AEGIS CTRM platform automated the cooperative’s trade capture process by directly uploading broker data and settlements across multiple accounts and commodity exposures. This created significant time efficiencies for the cooperative, while simultaneously reducing the probability of manual entry errors.

In addition, the AEGIS platform produced daily mark-to-market reports enabling the cooperative to value its trade positions and reconcile broker statements. The resulting income statements and balance sheets drove meaningful improvements to business performance reviews.

Outcome

The AEGIS CTRM platform automated and streamlined the cooperative’s operations and reduced its hedging costs significantly – while introducing net new business management capabilities.

The dairy cooperative is now able to more efficiently manage all hedge activities, forecast margins, and work from a single source of truth. Spreadsheets have been replaced with an executive-level dashboard that has the ability to drill into details appropriate to each user.

In short, the cooperative has modernized its operations and is better positioned to service its members.

 

"By implementing the AEGIS CTRM platform, we were able to reduce our costs considerably through business process automation and retirement of inefficient systems and spreadsheets."


Leadership Team | Dairy Cooperative

 

This testimonial is not indicative of future performance or success. Commodity interest trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. There is no guarantee that hedge program objectives will be achieved. Neither this trading advisor nor any of its trading principals offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Hedge advisory services are performed by the registered commodity trading advisor AEGIS-CTA, LLC, a wholly-owned subsidiary of AEGIS Hedging Solutions, LLC. This case study is not required to be and has not been, filed with the Commodity Futures Trading Commission ("CFTC"). The CFTC does not pass upon the adequacy or accuracy of this commodity trading advisor disclosure. Consequently, the CFTC has not reviewed or approved this case study.

 

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