Volatility in feed and hog prices has led to an increase in producer costs. Going forward, it needs to be determined if consumers will pay more for the same products, and how to manage volatility. Understanding costs is a big part of managing volatility, and this can be helped by creating crush margins. Managing feed costs can be done by integrating grain production into the business, or through using strategy tools like the Chicago Mercantile Exchange. Reducing cost of production whenever possible, and managing risks in interest rates and human resources is also important. Other external factors, including currency and the lender, can also impact volatility management.