Risk management tools in the context of common agriculture policy- dairy market

Abstract

This essay provides an introductory approach concerning environmental and consequently the agricultural risks faced currently, it also discusses the main causes, present consequences and also the tendencies for the future risks. It addresses the Common Agriculture Policy (CAP) history and its instruments. It also describes the current risk management tools under CAP to deal with risks possessed and its past implementation in dairy market (2014-2016). Lastly, it studies the potential effectiveness of such policies, a regression analysis was conducted wherein the dairy market prices were regressed by various variables (risk management tools) to determine if risk management tools had any influence on the prices.