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Fonds de Lissage (AFD)

Description: The goal of the AFD Fonds de Lissage is to manage the risks associated with short-term highly volatile cotton prices through a matching contribution and withdrawal system. The principle is as follows: free fluctuation of prices within margins set by a trend line price and initiation of an intervention beyond, when prices break the ceiling price as well as fall through the bottom price.
Link: http://www.momagri.org/UK/focus-on-issues/The-Fonds-de-Lissage-for-the-Cotton-Sector-in-Burkina-Faso-A-Pertinent-Initiative-to-Fight-Price-Volatility-_525.html
Author: momagri
Year: 2016
Category: Trade & Markets, Fair Trade
Submitted by: Andrea Bischof

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