Excerpt from the report Introduction: This report presents the results of a study undertaken to determine the extent of price risk in the commercial mixed-feed industry, the effect of risk-taking on the costs of feed manufacture, and the methods, particularly hedging, which are used by manufacturers to reduce their risks from price declines. The objectives of the study were not fully realized, however. Few feed manufacturers hedged consistently and conditions affecting inventory accumulations were complex. In a number of cases, manufacturers did not reveal the details of their operations which would be necessary to determine the extent of price risks involved and the effect of such risks on costs. In many other cases, particularly among small concerns, the records needed for such determination were incomplete or missing. It is believed, however, that the study meets the objectives within the range of the data that could be obtained.