Completed Project Report


Managing Marketing and Financial Risk in Dairy Farming Systems of the Southern Region

  • Award Amount: $47,895
  • Regional Center: Southern Extension Risk Management Education Center
  • Grant Program: 2022 Education Projects
  • Project Director: Gonzalo FERREIRA
  • Email: gonf@vt.edu
  • Organization: Virginia Tech

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Project Overview

The number of dairy farms in the Southern region has decreased dramatically in the last decade, and limited marketing and financial skills might contribute to such decrease. Small dairy farmers are reluctant to hedge prices in the futures market, and there are at least two reasons for this. First, small dairy farmers might not understand how the futures market works. Second, small dairy farmers might (erroneously) believe that hedging is only for large-scale farms.


For this project, we delivered seven educational workshops and two webinars to dairy farmers, extension educators, dairy industry personnel, and other stakeholders, totalling 227 attendees. The workshop described the principles of hedging through real-life examples and actual simulations of the hedging process. We complemented all this with real cases of the dairy industry. 


In addition, we developed an e-learning module to perpetuate the workshop and make it freely available to any stakeholder requesting it. If interested, stakeholders can request access to the course "Managing Milk Prices Using the Futures Market" by emailing to dairymanagementvt@gmail.com and requesting login credentials. Since its launching in early November, 37 attendees requested the e-learning module. 

Number of Participants: 263

Outcomes

Project Steps

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