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Price of milk

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Jim K

07-31-2007 13:44:12

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Hey the price of milk went up by about a buck here in Ma. The only thing I don't mind increasing in price. Have any dairys seen any of it yet?

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barnrat

08-01-2007 07:10:10

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

Your are right Ken, stick to your guns your boss is dead wrong. The big mega corp farms specifically in the SW part of the country are doing the biggest amount of suffering as they buy most of their feed. Just look what corn and hay are costing right now and imagine trying to buy feed for 5-10 thousand cows. Us small guys in the NE part of the country produce most of our own feed, there for aren't hit as hard with rising feed costs, plus we can rotationally graze which can really cut feed costs. A few years ago before diesel was 3 bucks a gallon it costed about $2000 for every 1000 miles a tanker load of milk had to travel. I cant see those numbers working in the long run. The future of dairy farming is going to be small farms that are close to large markets nestled among the urban sprawl.

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RodInNS

08-01-2007 08:16:29

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Re: Price of milk in reply to barnrat, 08-01-2007 07:10:10

Part of the problem we have up here is that things are structured in favor of the big operations, and policy is made to protect them, regardless of what the speech is...
One of the biggest problems here right now is high quota values which is driving the cost of production up. There are some of these large operations that are in very serious finincial situations because of the doubling and tripling the sizes of their operations in a short time. I think some of them should just be allowed to pop and get it over with, but decisions are made to protect the weakest. If they went belly up, that would correct the quota price to some degree.... Right now policy is being made to steal quota from the small operations to finance the larger ones. That said, we still don't have the mega operations that you would have in the US. IT just isn't feasible here due to quota costs.

The other factor that we're dealing with here is that we're trying to match production as closely to demand as possible. There really isn't any allowance for seasonal milk production, or even much seasonal variation in production. We have some flexibility in when we produce it, but not much, and it's getting tighter all the time.
It's actually getting cheaper to run a confinement system because it allows for more consistent week to week production, and we can't really afford to have inconsistent production. Inconsistency costs too much money here.

Trucking is always gonig up here too. Ours is equalised to a set rate per hectoliter.... but it goes up all the time.

Rod

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Matt from CT

08-01-2007 07:34:03

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Re: Price of milk in reply to barnrat, 08-01-2007 07:10:10

Does make you wonder how the guys who switched to small herds primarily grazing are feeling right now with $21 milk...

And they're not spending money on Diesel to plant & harvest corn, nor on the seed.

Old dairy farmer near me always said it's not what you gross, it's what you net. Gotta figure some of those very low input dairy farmers are doing very nicely right now.

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barnrat

08-01-2007 18:29:16

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Re: Price of milk in reply to Matt from CT, 08-01-2007 07:34:03

It feels good. I'm a small 50 cow rotational grazing herd. I was paying all my bills at $12 milk so you can imagine how I'm doing now. Plus the price of heifers is through the roof right now and I have my usual 8-10 heifers I sell every fall to make room in the barn.

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MeAnthony

07-31-2007 22:02:52

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

I've no idea, but the best darn milk I ever had was back when I was a kid and my dad was buying right out of the tank at a local dairy farmer. Let it set overnight, skim the cream off the top and mom made butter and such. Unless dad pinched the cream to make oatmeal. Dang that was good stuff.

Why can't someone come up with something so dairy farmers can process and sell their own milk? Would this be exceptionally difficult to do? I'd rather pay $3 per gallon to the farmer(who doesn't have to pay the middleman for pasteurization, bottling, etc.) than $4 per gallon to Sam Walton's heirs. Heck, even if the price came out the same as at a store in town, it would still eliminate me having to drive into town to get it.

Just rambling, thanks for listening! lol

Y'all have a good evening.

Anthony Nubel

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R.J.

07-31-2007 21:05:16

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

It about time milk price went at the farm gate, however not high enough as everything a farmer buys is way to high! Diesel,Seed,Parts you name it. I just spent 767.58 for diesel to work 194 acres, the per gal price 248.9. I milked cows for 28 years and folks one thing I can garantee is the price will come down as fast as it goes up always did during my time at dairying.

Have a good day.

R.J.

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JoeBob/IN

07-31-2007 21:03:43

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

Could care less anymore, I just hauled away the last of our milkers today! Will not miss that job.

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rodgernbama

07-31-2007 18:57:43

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

Did'nt the government buy out a lot of dairy farmers several years ago to reduce the supply?

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Weldon K

07-31-2007 18:51:56

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

Price of milk paid to farmer has increased. 'bout darn time !!!!!
2006 average price I was paid was less than $14.00 per cwt.( $1.20 / gal.). June 2007 price was $20.92 per cwt. ( $1.80 / gal ). We are told it will be going up more. I was in supermarket today and store brand was $4.09 / gal. That's $47.53 per cwt. !!!!! Last year while I got $13-14 cwt., retail was $3.79 / gal. --$44.00 /cwt. To much difference between farm price and retail price.

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barnrat

07-31-2007 18:21:42

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

Milk is priced now using a multi component system. You get paid one price on the pounds of protein you ship, one for the pounds of butter fat, one for the pounds of "other" solids, then a PPD(producer price differential). Which has something to do with (since we are in Federal Order 1) the distance we are from Boston, MA. They offer complete college courses on just milk pricing so I can't really explain all the details here. Just know that since the government is involved it's complicated. I don't complain too much about milk price, except to say it's better then the $12/cwt we got last year.

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RodInNS

07-31-2007 19:38:18

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Re: Price of milk in reply to barnrat, 07-31-2007 18:21:42

Yes, it's a lot more complicated than a simple price per hec or hundred weight....
Our system is probably more complicated again. Here producers are paid for fat, protein and lactose.
However, the real complicated business starts when that milk is sold to the processors. They are billed on a class system which is determined by the end product. Fluid is highest priced, followed by top industrial uses like ice cream and cheese with powder being priced at the bottom. The last couple years we've put thousands of tonnes of powder into feed just to be rid of it.... Hopefully our prices will start moving upward again, but the expected trend was for things to be rather flat.

Rod

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Steven@AZ

07-31-2007 17:47:20

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

Milk about $3.85 to $5 per gallon at the stores in North Dakota... Down here in AZ we pay $1.98 per gallon - those happy California cows give cheap milk!

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barnrat

07-31-2007 14:29:47

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Re: Price of milk in reply to Jim K, 07-31-2007 13:44:12

Got about $21/cwt for June milk and it looks like $24 for July. Be prepared thanks to hungry Chinese, ethanol and a crooked milk marketing system. ALL your food is going to go way up. On the news or in the paper they make it sound like the farmer is snitching more dollars from the poor, but in reality milk should be about $40/cwt to keep up with everything else.

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Jimmy King

07-31-2007 15:25:16

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Re: Price of milk in reply to barnrat, 07-31-2007 14:29:47

Barnrat, what is the BF Differental now and do you still get a protein diff.

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RodInNS

07-31-2007 14:54:57

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Re: Price of milk in reply to barnrat, 07-31-2007 14:29:47

Hello bessie! It'e been a while since milk was that high, if it ever was... but I don't follow your prices too close.
Our price has been sitting in the area of $68-72 per hectoliter for the last while, but with the "system" it never changes much anyway.
It never fails here though that when we get an increase, the paper and news all run stories of the welfare mothers that can't buy pencils for their kids because the price of milk went up 6 cents a liter....

Rod

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Jimmy King

07-31-2007 15:27:13

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Re: Price of milk in reply to RodInNS, 07-31-2007 14:54:57

The same mothers can buy Cigs and beer though can't they.

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Davis In SC

07-31-2007 18:01:38

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Re: Price of milk in reply to Jimmy King, 07-31-2007 15:27:13

Yep, Cigs, Beer, Tattoos, They really have their priorities in order.. I guess they can just give the kids Mountain Dew, instead of milk...

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730virgil

07-31-2007 16:04:31

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Re: Price of milk in reply to Jimmy King, 07-31-2007 15:27:13

yea we can't deprive them of anything. it's our responisbility as tax payers to take care of their brats. these kind of humans forms usually don't take care care of or try to raise their kids to know right or wrong.

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mark

08-01-2007 15:19:46

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Re: Price of milk in reply to 730virgil, 07-31-2007 16:04:31

Uncle Sam created WIC.....women, infants and children.

I think I'll sue them for not having a MIC! No, better yet, just get rid of the W qoutient of the WIC program. I'm all for kids having milk and food that their lazy, good for nothing parents won't provide for them. But for their sperm and egg donors.....CUT THEM OFF!

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Matt from CT

07-31-2007 17:14:31

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Re: Price of milk in reply to 730virgil, 07-31-2007 16:04:31

I don't think the farmers in my area are celebrating just yet, 'cause it'll take $24 milk for a good long while to make up for the drubbing they had the last couple years. Sadly it's pretty much just a real estate investment in my area now until they retire.

----- --
It's not just the cigarette & beer crowd, either. Local paper had an article today about lack of child care in my region and lack of state funding for it. One woman explained she needs child care because her and her husband (both mid-level professional careers) just bought a house and they need two incomes to make the mortgage and expenses...

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Ken Macfarlane

08-01-2007 05:59:37

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Re: Price of milk in reply to Matt from CT, 07-31-2007 17:14:31

I had it out with my day job boss about milk pricing, he thinks its way too expensive and it would be cheaper if they dereg'd and let all the small guys get put under by the corp farms. I tried to explain to him the end user would end up seeing higher prices since our area is too small to have multiple big corps competing hard.

He said oh they'll just bring in milk from other bigger areas. I don't want to drink milk that is from 2000 miles away milked 10 days ago on a corperate farm, that will likely cost more than the local milk! Why are people willing to give that self sufficiency up for a few cents in the short term while they pound the local operations out of business?

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