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Forecasting herd structure, milk production and their variances for production risk management

Forecasting herd structure, milk production and their variances for production risk management

Special Circular Ohio Agricultural Research and Development Center ( 169): 91-100

Substantial increases in milk-price volatility have resulted from changes in US Federal dairy policies. For a dairy farm, however, monthly gross milk receipts are a function of unit price and quantity produced. Both can vary substantially over time. Therefore, to be effective, risk-management strategies must address milk and input-price volatility (price-risk management) and fluctuations in milk production per cow and cow numbers (production-risk management).

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