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Marketing Advice  12/05/05 2:51:26 PM Printer Friendly VersionPrinter Friendly Version

  • Marketing Advice (Risk Management – Futures and Options)

    By selling dairy futures contracts, you can lock in prices you will receive for future production. Used alone, this strategy is beneficial in protecting against falling prices, but prevents you from enjoying the benefits of rising prices. By buying put options, you can get the best of both worlds – protect yourself against losses if the market falls, but also benefit from higher prices if the market goes up.

    The TABS marketing class meets once a month. Join a group of fellow dairy producers and benefit from their experience and knowledge in marketing milk and purchasing commodity feeds using futures on options as risk management tools. You work hard to produce your milk; you owe it to yourself to devote a few hours each month to marketing what you produce.
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