Extension > Agriculture > Dairy Extension > Marketing
Marketing
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Minnesota dairy operators utilizing Livestock Gross Margin as a risk management tool
Livestock Gross Margin-Dairy (LGM-Dairy) is an insurance policy; watching the margin rather than the milk price, look at predicted margins between the anticipated value of milk producers and the feed costs to produce that milk.
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It's the margin!
Producers need to think gross margin rather than milk price.
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Milk marketing: Things to think about, Part I
What do I need for a milk price?
Milk marketing: Things to think about, Part II
What is a good price for the market?
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Milk marketing: Things to think about, Part III
How do I implement my marketing plan?
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Overprotecting price with put options
Used to set a minimum price for Class III milk.
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A primer on put options
One put option represents 200,000 pounds of Class III milk.
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$16.13 milk in September: How could that be?
Develop a plan for protecting your milk price.
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For hedging, having the milk production to back up the contract is important
Understand the financial implications of being over-protected when hedging.
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A positive outlook for marketing the dairy industry in the 21st century
Areas of focus will include environmental pressures, technological challenges, innovation and world markets.
Other marketing resources we recommend
- Dairy market news portal – United States Department of Agriculture
- Daily Dairy Report – Chicago Mercantile Exchange
- Dairy Outlook – Pennsylvania State University
- Understanding dairy markets – University of Wisconsin
- Milk Income Loss Contract program – United States Department of Agriculture
- Dairy risk management curriculum – National Program for Integrated Dairy Risk Management Education and Research
- Federal milk marketing orders – United States Department of Agriculture
- Dairy briefing room – United States Department of Agriculture
