Dairy Support Inc. was established in 2005 with the vision of providing dairy farmers, processors, manufactures and wholesalers with innovative, flexible “forward Milk/Product Price Stabilization” programs designed to meet the specific needs of each individual client.
Dairy farms, like any business, need a stable, reliable income. Dairy Support’s “Forward Milk Price Stabilization” program assists dairy farmers in managing (stabilizing) their milk price with respect to their production costs. This helps maintain long-term profitability…regardless of low or high milk prices.
- Reduce milk price volatility.
- Reduce monthly cash flow volatility.
- Create a more stabile, defined business plan.
- Plan for long term growth and profitability.
One Program Does Not Fit All! Dairy Support understands each client has specific needs and objectives that are unique to their individual operation; therefore, we are dedicated to spending vast amounts of time to understand, educate, and design a milk/product pricing program that aids in the long run profitability and growth of your operation.
Our “Forward Milk Price Stabilization” program is a risk management tool (similar to forward milk pricing contracts offered by cooperative milk handlers) which allows producers to fix a portion of their milk price. The program allows producers to minimize the risk associated with commodity price volatility, while satisfying lender concerns about cash flow.
Our Program is unique because it allows you to ‘lock in’ your base price, for a specific period of time, receive the average price every month (for the contract period), with out tying-up valuable capital in a margin account! You negotiate premiums with milk handlers, and are not necessarily tied down with a specific handler for the life of the contract; in short, the contract is transferable. You can ship your milk to whomever you want, whenever you want, and still retain your contracted base price!
Dairy support’s “Forward Price Stabilization Program” gives you the opportunity to ‘lock in’ milk prices that are favorable to your individual operation, without the extra expense associated with tying up valuable operating capital in margin accounts and margin calls; while allowing dairy farmers the freedom to market their milk to maximize premium returns.