Analysis of a Cooperative Dairy Producer Risk Management Program
Travis Heiman, Kearney, MO, defended his thesis, “Analysis of a Cooperative Dairy Producer Risk Management Program,” on April 19, 2011. He is the Marketing Program Manager for Dairy Farmers of America in Kansas City, MO. He will graduate from Kansas State University in May with a Master’s in Agribusiness (MAB).
As a national milk marketing cooperative, Dairy Farmers of America (DFA) is focused on marketing the milk of its 17,000 members. One service offered by DFA to its members is Dairy Risk Management Services, which provides members the opportunity to manage price risk.
“Dairy Risk Management Services helps members manage milk price and receive a more consistent gross price rather than relying solely on the market,” Heiman said.
The objective of his Master of Agribusiness thesis was to determine the demographics and characteristics of dairy producers that are correlated with their decision to use or not use risk management tools offered by DFA.
Kevin Dhuyvetter, Professor of Agricultural Economics and Heiman’s thesis advisor, said, “Travis did a very nice job with his thesis research, he analyzed some data unique to DFA that should help them with future strategic planning for their Dairy Risk Management Services decision. His results will be beneficial as DFA considers how to market risk management services to its members.”
In addition to the tangible benefits of research results, there are intangible benefits to this program.
“I think the MAB program strengthened Travis’ analytical and communication skills and that will benefit both him and his employer in the future,” Dhuyvetter added.
The full thesis publication can be found online on K-State's Research Exchange at http://hdl.handle.net/2097/16173.