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Prepare for tomorrow with risk management strategies

Risk management illustration iStock/Getty Images Plus/takraw
Be comfortable with locking in a good price.

The impact of COVID-19 throughout the swine industry has created a difficult environment to sell pigs at a good price in 2020. While 2021 has yet to be determined, it is important to prepare today with appropriate risk management strategies for tomorrow.

Spencer Wayne speaks with Gawen Zomermaand in a recent SwineTime podcast about market hedging and what it looks like in pig production. The pair, both with Pipestone Veterinary Services, also discuss how to best educate yourself on risk management and the benefit of finding a good partner for advice and service.

While the majority of pig farmers realize they should at least minimally manage risk, the main question is "What percent do you need to manage risk on?"

Throughout this SwineTime podcast, Wayne and Zomermaand address three main steps.

  1. If you get a good price, lock it in with at least 50% of your pigs.
    1. In the end, you will still have an opportunity for a profit.
  2. Developing a broad strategy because selling pigs is more than just contracts.
    1. Educate yourself and constantly be learning and looking for options to diversify.
  3. Align yourself with a good partner for advice and service.
    1. Have someone on your road path and establish a key relationship with them.

Click here to listen to the entire podcast and get informed on the correct strategies to use.

For information regarding hedging, contact Zomermaand, 712-737-4474, or for information regarding Big Stone Marketing’s forward contracting program, contact Christine Colemer, 507-825-7059.

Don't miss future SwineTime podcasts
The SwineTime podcast was created for the pork industry and individual producers around the country. Hosted by Wayne, the podcast discusses pork industry news, advancements in animal care and how to enhance your productivity. Monthly podcasts are available on Spotify, Google Music, ITunes, Anchor and on Pipestone.com.

Source: Pipestone Veterinary Services, which is solely responsible for the information provided, and wholly owns the information. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. The opinions expressed above are not necessarily those of Farm Progress/Informa.
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