Risk Management

Variability in the profit (or loss) stream results from variation in weather, forage production, livestock performance, and prices; that is, these factors all contribute to economic risk. In managing risk, variation in profit derived from the production system is reduced, albeit with a simultaneous reduction in average profit over time. Thus, minimizing risk is inconsistent with maximizing profit. However, managing risk may ensure the long run economic sustainability of extensive beef production systems. Commonly used risk management strategies include: scaling production systems conservatively; stockpiling feed for later use; choosing animal genetic resources that have energy demands consistent with the nutritional and climatic environment; and employing marketing strategies that capture the value of products produced.

Diabetes Sustenance

Diabetes Sustenance

Get All The Support And Guidance You Need To Be A Success At Dealing With Diabetes The Healthy Way. This Book Is One Of The Most Valuable Resources In The World When It Comes To Learning How Nutritional Supplements Can Control Sugar Levels.

Get My Free Ebook

Post a comment