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Margin protection options weighed

October 29, 2012

Protecting a dairy’s milk income from soaring feed costs has never been more of a challenge. Historically, producers have turned to the futures and options market to hedge against milk price declines or increases in feed costs. Now, thanks to the federal government’s willingness to subsidize insurance premiums, there are some other interesting choices available.

What motivates your dairy employees?

October 29, 2012

Gerald Higginbotham

In conversing with dairy managers, their usual complaint is their labor force. When these individuals are asked what motivates their employees to do a good job every day, the usual response is: “They will be fired if they don’t perform well. That is motivation enough.” Their statements may be true, but is employee performance really improved with the threat of termination? Dairy employees already have the desire and capability to become top performers.

Growing a successful business plan: How to protect your biggest asset

October 29, 2012

Don DeJonge

With the uncertainty of today’s stock market, business owners would rather put their hard-earned money into assets they can physically see and feel, such as land, cows or diversified crops. As a result, the majority of business owners’ assets are tied up in their business. If this holds true to your situation, do you have a solid succession plan? All business owners leave their businesses eventually. Whether the plan is to transfer assets to the next generation of actively involved family members, sell your business to a group of key employees or you end up having to deal with the unexpected (death or disability, for example) that prevents you from running your company – you need to be prepared.

You … compared to a politician

October 29, 2012

Tom Wall

Ever since I was a little kid, I’ve liked politics, campaigns and elections. There was something magical about heading down to the old Town of Franklin voting “shack” that was heated by a wood-burning, potbelly stove. I couldn’t wait to go with my parents and stand in line with all the other people who were waiting to cast their ballot. Although I’m still fascinated by the political process, as a tax-paying adult who “works too much,” it seems that the reality of it isn’t as charming as I once thought it was. The truth is … I’m afraid my cynicism and sense of logic has replaced my naïveté and sense of emotion.

Steps for building a high-functioning risk management team

October 29, 2012

Mark Ludtke and Dan Wenzel

A common managerial theme in the dairy industry is “surround yourself with good people.” When it comes to risk and opportunity management for your dairy, how do you build the team? We teamed up to write this column and share the best practices we see among today’s well-run dairies. Here’s what we – a dairy business consultant and a commodity marketing consultant – see as essential steps to creating a high-functioning team that gets results for the dairy business:

Who decides the rules? A global view of feed and food

October 29, 2012

Alan B. Gunderson

While many of you were attending World Dairy Expo in Madison, Wisconsin, I was in Rome, Italy, at the joint meeting of the United Nations Food and Agriculture Organization (FAO) and the International Feed Industry Federation (IFIF). As global agriculture continues to evolve, it is increasingly important to have coordination and cooperation between nations, feed associations, regulatory bodies, scientists and feed companies from around the world. FAO has been charged by the UN to increase the supply and security of food for the world. Most of its resources are spent assessing the supply of food in the world and what can be done to make it available and affordable to more of the world’s population.

Crucial conversations on your dairy

October 29, 2012

Jorge M. Estrada

Every day there are conversations of different types occurring on your dairy. These interactions happen to everyone, owners, managers and employees – and they are the day-to-day conversations that affect the life of the dairy and the life of everyone involved. It is important for your radar to be at its highest awareness because what makes a conversation crucial is: First, that opinions do vary from person to person. Second, that the stakes are high depending on the situation.

Now’s the time to focus on employee management

October 29, 2012

Peter Coyne

How will 2013 affect your employees? For many dairy producers, 2013 may be a challenge as surging feed prices have driven the cost of production to new highs. Are your workers aware of this situation? Do they understand your expectations or have they been receiving mixed messages during these stressful times? Who do they go to for answers when they have questions?

California producers and processors discuss marketing orders

October 29, 2012

Cecilia Parsons

Looking for another avenue to price relief, California dairy producers and processors gathered in Tulare Sept. 20 to explore federal milk marketing orders. What they learned about the complicated and challenging process of proposing and securing a federal order prompted numerous questions – many of which could not be answered. A question and answer session also revealed doubt that enough producers and processors could agree on all aspects of an order which must be voted in by a two-thirds majority of producers and processors or producers and processors representing two-thirds of milk production.

Kardashian’s new book details industry’s squeezed margins

October 29, 2012

Walt Cooley

I accidentally stumbled upon Kirk Kardashian’s first-ever book early this fall. I read the advanced copy his publisher sent me and interviewed him shortly after the book’s release date. Click here to view my one-on-one with him. In summary, the Vermont-native’s manuscript is the best compilation of all of the gripes I’ve ever heard from dairy producers about why their industry is perpetually plagued by squeezed margins. Its throw-the-kitchen-sink-at-it approach is aided by Kardashian’s careful research into the historical context for how current industry scapegoats – such as sexed semen, ethanol, dairy policy and Federal Milk Marketing Orders – have, over time, impacted the difference between what it costs a farmer to produce milk and what he or she gets paid for it. From beginning to end, the book portrays a milk margin that has been squeezed thin and is perpetually getting thinner.