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SGX-NZX Dairy Derivatives
Helping Producers, Traders, and Buyers Navigate Dairy Price Volatility with Greater Certainty, Flexibility, and Global Market Access.
SGX-NZX Dairy Derivatives provide market participants with a forward view of dairy prices and a cash-settled suite of instruments to manage price risk efficiently. Designed for the global dairy industry, these contracts help market participants mitigate exposure to price fluctuations and navigate volatility with greater confidence.
Participants in international dairy markets face significant price volatility. New Zealand, which exports approximately 95% of its milk production, sits at the centre of this global market—exposing both producers and buyers to constant price movements. As a result, there is increasing demand for tools that provide greater certainty over pricing and more effective risk management.
SGX offers a comprehensive suite of dairy futures and options contracts, catering to participants across the value chain—from New Zealand farmers to global dairy buyers. Supported by SGX’s global distribution and market access, these products help participants hedge exposure, improve price visibility, and manage risk across evolving market conditions.
Market History
On 8 April 2021, NZX and SGX formed a strategic partnership to accelerate the growth and global distribution of dairy derivatives. This followed a Heads of Agreement signed in October 2020 to expand the listing of NZX Global Dairy Derivatives contracts on SGX’s trading and clearing platform.
This partnership combines NZX’s deep expertise in dairy markets with SGX’s global reach and liquidity, strengthening access and participation in the global dairy derivatives market.
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SGX-NZX Global Whole Milk Powder (WMP) Futures and Options provide market participants with exposure to one of the most widely traded dairy commodities globally. As a key benchmark in international dairy pricing, these contracts help producers, traders, and buyers hedge price risk, manage volatility, and gain greater confidence over future pricing outcomes.
Contract Specifications
Source: SGX Group
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SGX-NZX Global Skim Milk Powder (SMP) Futures and Options enable participants to manage exposure to SMP price movements in the global dairy market. Widely used across food manufacturing and dairy processing, these contracts support more effective hedging, improved price discovery, and better risk management in changing market conditions.
Source: SGX Group
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SGX-NZX NZ Milk Price (MKP) Futures and Options are designed to help participants hedge against fluctuations in farmgate milk prices. Closely linked to international dairy markets, these contracts provide a transparent and efficient way to manage income volatility, secure forward pricing, and improve certainty for producers and other market participants.
Source: SGX Group
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SGX-NZX Global Butter (BTR) Futures provide market participants with a tool to manage exposure to butter price movements in the global dairy market. As butter remains an important component across food production and dairy consumption, these contracts help participants hedge volatility and strengthen pricing certainty in a dynamic market environment.
Source: SGX Group
