About this module
In connection with the Pricing Module the Price Calculator Module is specifically designed for the milk industry. The milk producers/farmers are being enabled to simulate prospective payouts in comparison to hedges at the commodity futures exchange. Here we apply the logic and basis of calculation of milk-price settlements as calculator. This can be customized by every producer/farmer individually (e.g. fat and protein content, surcharges, etc.)
Advantages & Additional Value
- Simulation of potential future payouts
- Illustration of different calculation logics
- Application of multiple calculation factors (e.g. standard milk, organic milk, etc.)
- Comparison of payouts (dairy – commodity futures exchange)
- Individual calculation factor customization for every producer/farmer
- High transparency = Increased use of fixed-price offers (commodity futures exchange)
Operational Area
Fixed-price agreements between dairies and milk producers.
Case study
The following process run shows one of many possible applications which can be realized through the fixed-price module.
This example shows the procedure between the dairy and its milk producers/farmers.
Dairy determines calculation parameters for fat, protein, quantity premium etc.
Dairy enters basic price for the past month
