Dairy Risk Management Services
Milk price volatility is a real concern for today’s dairy producers, adding unique challenges to managing a dairy business. Dairy Risk Management Services (DRMS) offers a variety of milk price and input cost forward contracting programs, tools to help you manage a milk price and secure a margin that works for your dairy business. This website gives you the resources to assist you in using our programs.
DRMS is a business unit of Dairylea Cooperative Inc. It was developed to provide members with proactive and diverse opportunities for forward contracting their milk price and managing a margin between milk price and input costs. Since its inception in 1995, DRMS has strived to bring you new options for your risk management planning, and we are constantly working to improve member understanding of utilizing futures markets and forward contracting programs.
Might forward contracting with Dairylea be in your future? Here are some things to keep in mind:
- Over the years, Dairylea’s DRMS has developed a number of forward contracting programs to suit the needs of a majority of our members. We have programs to lock in a fixed price, set a minimum protection price while still maintaining full upside, lock in a range of milk prices, and more. And we’re continually evaluating our programs to find ways that work for you and your operation.
- There is no “best time” to forward contract milk. The right time to contract is when the pricing levels available work for you and your farm.
- Contracting does not need to, and should not, be an all or nothing jump. Programs through DRMS allow you to lock in as little as 20,000 pounds monthly. Select the months you want and the duration of time you’re comfortable with.
- Read on to learn more about all that we offer!