Services

DairyVisor Margin

Most producers know their historic production costs and net operating margin, but find it challenging to monitor forward profitability. “DairyVisor Margin” was developed to simplify this process. This management tool is a user friendly web based margin monitoring program that uses the following inputs to project individual client situations:

  • Variable cash expenses
  • Individual pen rations
  • Estimated milk production
  • Term debt service obligations
  • Projected milk basis
  • Cash and futures positions traded

Local cash feed and grain market information is integrated into the software by DairyVisor support staff to project individual operation costs.

“DairyVisor Margin” uses live futures and options prices to calculate open trade position equity, and project forward margins. This allows management to monitor the projected financial situation of their business as markets move.

A quick glimpse of the forward dairy margin graph is helpful to the decision making process. With this information at your fingertips, marketing decisions can be made with a better understanding of the trading risk associated with them.

Interested?

If you have an interest in learning more about DairyVisor services, give us a call at 320-634-3771 to schedule a meeting or complete our contact form.

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Why choose DairyVisor?

Managing market volatility in the dairy industry can be difficult if the process is not supported with quality informational resources, and trading experience. DairyVisor strives to simplify this process for clients by:

  • Interpreting pertinent fundamental market information, and delivering it in an easy to understand format with “DairyVisor Data”.
  • Monitoring forward profitability using the “DairyVisor Margin” software.
  • Assisting “DairyVisor Pro” clients with strategy development and follow through execution, using cash and futures contracts.

It is a common practice in the dairy industry to monitor forward profitability based on “Margin Over Feed Cost” futures based calculations. Although this provides a generic benchmark for the industry, it does not accurately reflect individual business profitability. DairyVisor understands the importance of integrating local cash feed markets and regional milk pricing into the profit equation, and feel this is what sets our services apart from other firms.