Dairy Risk Management Services

Innovative Programs to Reduce Risk

Why Risk Your Milk Price?
With Dairylea's Dairy Risk Management Services (DRMS), you don't have to! DRMS provides members with flexible, innovative, and value driven risk management programs to help reduce the risk associated with milk and feed price uncertainty.
Minimum Price Contract
Allows a member to put a floor under their milk price. For a per hundredweight fee, the Minimum Price Contract offers price protection from declining milk prices but allows a member to receive 100% of the milk price if it is higher than the floor.
Fixed Price Forward Contract
The forward contracting program allows members to lock in a price for a portion of their milk for any number of upcoming months.
Upside Rider
The upside rider is an insurance product used with fixed price Forward Contracts. An upside rider can be compared to an insurance policy against the market price significantly rising above the members contracted price. For a per hundredweight fee, the Upside Rider allows the member to receive a portion of the milk price that exceeds their contract price.
Feed Rider Contract
The Feed Rider Contract secures a margin between your milk price and feed costs by reducing your exposure to major changes in primary feed costs. It can be used with any of our milk price contracts.
Min/Max Contract
The Min/Max Contract minimizes the lows along with the highs of milk price volatility. A Min/Max Contract allows the member to have a floor and a ceiling price, for a per hundredweight fee. Their actual forward contract price will settle somewhere in the range between the floor and the ceiling price.
Milk Price Stabilizer
The milk price stabilizer program, eliminates volatility in members blend prices or the Producer Price Differential (PPD) from month to month.