Estimates suggest that of the $300B global dairy producer industry, only 20% are hedging using fixed price, futures and options risk management strategies to protect themselves against volatile milk and feed price fluctuations. This underutilized tool represents a relatively new and growing commodities trading market. Vault Dairy Technologies has recently launched a platform providing new tools for more dairies to thrive by hedging against uncontrollable pricing risks.
Vault Technologies was first launched as a financial decision management tool illustrating a clear picture of future performance based on market conditions and an individual dairy’s operations. Vault keeps track of dairy hedging positions and the impact on net P&L with custom reports and user-friendly graphs. Additionally, Vault facilitates the process of stress testing a dairy’s financials and running virtual pricing scenarios to analyze price risk exposure.
Vault is not stopping there though. The company is now announcing the release of VaultTrader as the first of its kind online dairy trading platform available via desktop or tablet. For no additional charge, Vault users can now see live quotes and take action for their business by placing live option, future and spread orders in dairy, grain and other traded commodities on the Chicago Mercantile Exchange. Dairy leaders are now empowered with Vault to quantify the future results of today’s decisions and make actionable trades within the same platform to leverage those insights.
"Dairies who employ hedging strategies can protect themselves through milk and feed price swings," explained Eric te Velde, owner of Open Sky Ranch. “The Vault platform allows me to take a good look at the next 24 months for my dairy, updating in realtime, allowing me to review, discuss and take action if need be.”
A new dawn of data access is shaking up the milk industry. Vault simplifies dairy risk management by helping farms improve/protect margins and forecast 24 months of future financial results. This is a trend and something progressive dairies don’t want to fall behind on.
Source: Vault Technologies, LLC