Dairy farmers are usually subject to net income fluctuations due to volatility in both milk and feed prices. Risk management tools, such as hedging milk prices in the futures market, may be used to protect dairy farmers against milk price volatility. Alternatively, dairy farmers selling milk in Virginia can buy Virginia milk commission base (MCB) to obtain higher milk prices and, therefore, sustain or increase net cash flows.

This video intends to help stakeholders improve their silo face management practices, prevent spoilage and waste! Learn to properly face bunker silos.

Typically, feed costs are directly related to milk production, so the more you feed, the more you produce. However, milk production is not necessarily related to profitability. Production-oriented management, which focuses on maximizing outputs (i.e., milk yield) through increased utilization of inputs (i.e., feed), does not necessarily ensure the dairy business will be profitable.