Designing a milk contract to meet the prevailing market conditions

摘要

Don't overlook the chance to make sure your milk contract is still delivering for you. Contracts deserve extra scrutiny since milk prices rose sharply last year, and will be just one of the topics up for discussion at this year's Dairy Event & Livestock Show. Drafting a contract that works in familiar market conditions is relatively easy. What is more difficult is designing one that performs when market conditions fundamentally alter. Historically, many milk producers have been passive in shaping contracts and few will have considered how their contract stands given the radically different market conditions of the past 12 months.