Lock in Risk Reduction in Late Summer
The state of U.S. dairy industry in 2023 may later be recalled as the year of “the correction,” “the valley,” or “the crash,” as milk prices have plummeted by as much as half from record-setting highs in 2022.
But don’t let mid-year despair overcome the need to manage risk going forward. The August-September window is an important time to act, according to Dr. Kevin Hoogendoorn of Ireton, Iowa, developer of the ZISK app.
“The fall of this year will again bring us better prices,” Hoogendoorn predicted, noting that October and November have consistently posted healthy milk-price bumps in the past 5 years. “In the future, when we see an opportunity to lock in prices, we need to act. Back in September of last year, we could have locked in this summer’s entire milk production for over $20.00/cwt.”
By MAUREEN HANSON
August 10, 2023