Manage risk with an open mind
A licensed broker encourages pork producers to manage risk with an open mind.
“Try to be unbiased in your approach to the market.”
Michael Rhoades with Advance Trading Incorporated tells Brownfield it’s easy to have a bearish or bullish bias.
“I’d much rather have my customers or people in the industry look at margins and profitability in order to make smart risk management and marketing decisions.”
And he’s confident in that approach as hog farmers face another year of volatility.
“When markets are very volatile they become unpredictable. When markets are unpredictable, a lot of producers stay on the sidelines for their marketing and risk management because they can’t really make sense of what the markets are trying to do.”
Rhoades recommends a marketing plan that protects the downside and allows producers to participate should markets rally.
Brownfield interviewed Rhoades Tuesday at Minnesota Pork Congress in Mankato.