Managing Dairy Price Risk

A Tutorial in the Use of Dairy-Based Futures and Options

Wisconsin Center for Dairy Research
and
Department of Agricultural and Applied Economics,
University of Wisconsin-Madison

This section of the University of Wisconsin Dairy Futures web site contains a simple workbook that will provide some definitions, examples and analytical tools associated with the use of dairy futures for managing price risk. This section will be useful for dairy farm operators as well as users of milk such as cheese manufacturers who are new to the use of futures markets.

Throughout this workbook, you can choose from a number of interactive tutorials to hopefully provide a better understanding of the concepts. If after working through these exercises, you continue to have questions, feel free to contact Dr. Brian W. Gould, Professor Bob Cropp or Professor Ed Jesse for further information.

In several of the tutorials you have the opportunity to input values appropriate to your situation. The values calculated by the tutorial program are represented by italicized characters. 

  

Throughout the tutorial there are graphical representations of important concepts. You will need an Adobe Acrobat Reader to view these images. If you do not have this reader click to download a free version of this software.  

Note that if you are using a modem, downloading either of these software packages may take a considerable amount of time.