Many dairy owners and managers have recognized the need for some sort of risk management program to navigate through today’s volatile markets. Like anything, you get better with practice and experience. I recently heard a speaker that made me think about how dairy producers can become more adept at dealing with price risks and opportunities – and the consequences of not honing these skills.

“I don’t have time” – Reflect on how often you use this very short response, either to others or to yourself? For most, the answer is often. In this article we look at why this is usually not a good answer. Let’s assume the time right now is 1:00 PM. You ask me to complete a task that will take three hours by 3:00 PM. We can all agree that “I don’t have time” is the right response since I can’t do a three-hour task in two hours.

“We had just dispersed from taking a staff photo of all our dairy’s employees – no small feat given the different shifts that we have and everyone showing up to work on time. It wasn’t until after the photo that I realized everyone was wearing new company shirts we had purchased – except for one of our newer employees. I knew he would stand out in the photo like a sore thumb, but he hadn’t said anything to me. Then I wondered if he thought I was punishing him because after a few days on the job, he had caused $1,400 in damage to one of our tractors. He said he could operate heavy machinery when he applied. I soon learned he wasn’t as skilled as he said he was. Not giving him a company shirt was purely an oversight; we had ordered him one. Should I give him the sweatshirt now? Or should I just let him think I’m punishing him? What should I do?”