Method and system for contracting producer milk on a class III basis

摘要

A system and method to: Protect the process used to hedge Class II handler milk price exposure and to allow the Class II handler to control the use of the process for its customers, producers, or others who are deemed suitable to the Class II handler and are willing to compensate the Class II handler to utilize the process for their hedging requirements. In one aspect of the invention, the Class II handler will be able to offer to its customers a way to transparently hedge (or set) its milk price as a component of its finished goods cost in a fashion that is correlated in accordance to all FASB and Sarbanes-Oxley financial reporting requirements, and provide a competitive advantage over others. The system and method can be applied in analogous ways to buyers and suppliers of different components used for different finished goods.