milk prices

larry@stinescorner

Well-known Member
We dont buy milk much,we drink coffee black,and eat oatmeal,so we dont often buy milk.Today we went to costco and got some stuff for my mother in law. A gallon milk was 2.22. It doesnt seem possible a farmer produces a gallon of milk,it gets picked up.processed,bottled in a plastic gallon,shipped and put on the shelf and sold,,,all for 2.22 cents? In my mind it seems it should be more than that?
 
If milk is $15 a hundred weight, the farmer got about $1.30 of that. Talk to a farmer in your neighborhood as to his local price. It is about what we got last month here in WI.

Milk is often used as a "loss leader" in grocery stores, sold at or below cost to entice customers in. The idea is then they buy other stuff at a higher margin. This is also why milk is usually in the back of the store- they get you to walk by all the other stuff on the way.
 
Here in VA we have a milk commission which says you have to sell milk 6% above cost. At the grocery store I work at we are at $3.00 for a gallon of HVD.
 
Kroger sells it in VA for less than the milk commission allows. Kroger was threatened with legal action, and dared the commission to make the first move. No action has been taken in the more than 20 years Kroger has been selling it too cheap, because the commissioners fear the law will be overturned, and the commission disbanded. Milk commissioners are political appointees, and it's a high paying, cushy job!
 
Dairy farmers are taking it in the neck for sure . World trade and world politics , sanctions against Russia for invading the Ukraine , and the end of EU supply management , are causing a huge surplus of Dairy products on the world market. Really nothing Dairy farmers can do until some one blinks. The EU keeps giving farmers there money to keep them from rioting in the streets of Brussels. Some thing will give, just hope it isn't farmers in your local area , they haven't caused this mess.
 
My employer just did a huge upgrade for a local dairy where the owners spent a few million on buildings and other upgrades.
With the current price of milk, they must have a very abundant lending institution.
 
(quoted from post at 17:06:36 04/03/16) We dont buy milk much,we drink coffee black,and eat oatmeal,so we dont often buy milk.Today we went to costco and got some stuff for my mother in law. A gallon milk was 2.22. It doesnt seem possible a farmer produces a gallon of milk,it gets picked up.processed,bottled in a plastic gallon,shipped and put on the shelf and sold,,,all for 2.22 cents? In my mind it seems it should be more than that?

They do take 2-4% out as cream and sell it at a premium.....
 
At $15 per cwt, milk is 15 cents per pound. A gallon weighs about 8.6 pounds. $1.29 per gallon is what the farmer got.
 
(quoted from post at 03:43:34 04/04/16)
(quoted from post at 17:06:36 04/03/16) We dont buy milk much,we drink coffee black,and eat oatmeal,so we dont often buy milk.Today we went to costco and got some stuff for my mother in law. A gallon milk was 2.22. It doesnt seem possible a farmer produces a gallon of milk,it gets picked up.processed,bottled in a plastic gallon,shipped and put on the shelf and sold,,,all for 2.22 cents? In my mind it seems it should be more than that?

They do take 2-4% out as cream and sell it at a premium.....

Farmers don't do that anymore. Haven't for some time.
 
(quoted from post at 22:27:37 04/03/16)
(quoted from post at 03:43:34 04/04/16)
(quoted from post at 17:06:36 04/03/16) We dont buy milk much,we drink coffee black,and eat oatmeal,so we dont often buy milk.Today we went to costco and got some stuff for my mother in law. A gallon milk was 2.22. It doesnt seem possible a farmer produces a gallon of milk,it gets picked up.processed,bottled in a plastic gallon,shipped and put on the shelf and sold,,,all for 2.22 cents? In my mind it seems it should be more than that?

They do take 2-4% out as cream and sell it at a premium.....

Farmers don't do that anymore. Haven't for some time.

I was talking about the milk processors...
 
Sometimes you got to look at other options especially on startup. I know a few that are selling organic and grass only it takes time but with rotational grazing buying limited machinery there doing okay. One other factor that helps them out is the life of the cow there willing to take a little less milk but it isn't unusual to have 10 year old cows compare that to conventional at maybe 5 right there you can see the difference in replacement cost.
When I was milking you could get good production on good grass I was told once when you're production reaches a certain point you end up buying milk
 
I rarely buy milk. Don't use it very often. Milk will go bad before I can use it. Instead I but powered milk. I add it to my coffee only to reduce the acid an my body needs calcium. With calcium my nails get very thin
 
2.06 per gallon with store card (Wegman's). As others have noted the processors do separate the cream out for other products such as ice cream, butter, and cheese. So consider that when trying to figure to profits of the processor and the stores.
 
Yeah, and every stinking doctor on the planet screaming about not drinking any milk doesn't help either. They ruined the butter and egg market for 40 years until they decided, "oops, we were wrong about that, butter is better for you than margarine now, and eggs are okay, too". Wonder how many years it will take before they decide, Uh...yes...well.....ahem.................seems we were mistaken about milk...............it's better for you than we thought...................uh sorry 'bout that!

And I'm going to shut up now, before I REALLY get going on this subject. My blood is boiling already! (chuckle)
 
McAuliffe is only looking out for himself, and the nnalert party. He doesn't care about Virginia, because he isn't a Virginian. He only moved here to be eligible to run for governor, much like nnalert moved to NY so she could run for the Senate. The abundant federal government employees in Northern Virginia elected him, not us folks who work for a living. He is a carpet bagger. Glad he can only serve one term.
 
At 1 %or 2 % you are not really buying Milk !! This is false advertising in my mind.. You are buying the illusion that it is milk, so the middle man is the one who's making the money. As far as the poor farmers, they are their own worst enemy, when the price drops they get more cows to make up for the drop in price and contribute the equation of supply and demand. More supply only keeps the prices low !! Sorry folks, just calling it as I sees it..
 
I quit shipping milk 14 months ago. Price of milk in mid 2014 reached $29 per cwt. By Jan. 2015 it was in $19 range and dropping. Plus the co-op had started charging a lot more for hauling, so I quit. Glad I did.
Federal order #5 (Appalachian Marketing area) Feb. 2016 uniform (blend) price for Mecklenburg County , N.C. was $16.41. Deduct about $1.20 or more from that for hauling and other charges to get farmer mailbox price. A friend, who still milks in another county near me, told me that March 2016 milk was going to be about $1.50/cwt less than Feb. I just heard that the last dairy in my county sold the cows recently. I recently read a report that a large well known auction company in South Carolina that has been the go to company to auction herds in the southeast USA, has had lots of calls from dairy farm operators wanting to sell their herds, but there is little to no interest from anyone wanting to buy cows. Sad situation dairy operators are in now.
 
depends on where you shop

Aldi's here is about $1.89
Menards is about $2.99
CVS anywhere from $2.99 to $3.2
Gas station is about $3.60
Meijers usually under $2.00 They bought the old Bareman's dairy outfit in Michgan when they sold to Praire Farms.
 
(quoted from post at 04:13:26 04/04/16) A little more than $4 a gallon north of SF Bay CA.

Well, it is California. Probably no good reason for it to be that high, unless it's due to taxes and over burdensome regulation.
 
I drank cows milk growing up then switched to goat milk cause my kids couldn't handle the cows milk. With kids grown I drink almond milk. Only problem is I have to milk a lot of almonds every day.
 

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