We all know now the CWT results for the current program. 103,000 +/- cows and 1,000 heifers. Around 1% of the national herd being removed, not enough cows!
Depending on the money spent on these cows (I'm guessing $92,700,000) that leaves $107,300,000 left for the next bid period. At $900/cow that would remove 119,222 more cows.
This would take care of the $200,000,000 secured for CWT buyout bids earlier this year. Not enough cows to help "bounce back" the milk price. Sadly, it means some more dairymen & women will have to get out of the dairy business. As I have said before, we all need to reduce our herds by 5% to get our milk price back up to break even and maybe make a little profit.
97 degrees and 13% humidity in southern NM, Dona Ana County.
Friday, May 15, 2009
Saturday, May 9, 2009
Waiting for CWT announcement
We'll see very soon (maybe two weeks) the number of bids submitted to the CWT for herd reduction. We all need to tighten the number of cows we ALL have on our dairies. If we all remove the bottom 5% of the herd (1 cow for the 20 cow dairy, 5 cows for the 100 cow dairy, etc) milk prices will improve for everyone. This reduction should be done regardless of the number of cows removed by the CWT. These cows should be removed in addition to the CWT cows removed.
Have I repeated myself enough? Excess and low preforming cows need to be removed ASAP! I know that as soon as our milk prices approach breakeven levels, processors, consumers, and maybe the government will scream bloody murder about the price of milk. They never came to our aid during these past six months when our milk checks were 40% to 50% BELOW breakeven.
These have been the worse six months I can remember in the 43 years I've been dairying in New Mexico. We have always worked with low milk prices compared to the East. Always working with blend prices made up of 1/3 Class I, 1/3 Class III, and 1/3 Class II & IV.
Weather update, touched 100 degrees yesterday with 25% humidity. Right now at 08:20 am it's
75 degrees and 43% humidity. No rain either for the past six months, but our monsoon season is coming up in July.
Have I repeated myself enough? Excess and low preforming cows need to be removed ASAP! I know that as soon as our milk prices approach breakeven levels, processors, consumers, and maybe the government will scream bloody murder about the price of milk. They never came to our aid during these past six months when our milk checks were 40% to 50% BELOW breakeven.
These have been the worse six months I can remember in the 43 years I've been dairying in New Mexico. We have always worked with low milk prices compared to the East. Always working with blend prices made up of 1/3 Class I, 1/3 Class III, and 1/3 Class II & IV.
Weather update, touched 100 degrees yesterday with 25% humidity. Right now at 08:20 am it's
75 degrees and 43% humidity. No rain either for the past six months, but our monsoon season is coming up in July.
Monday, May 4, 2009
Dairy Issues
Well it's May 4th already and still working on the monthly reports. Banker will be here on Thursday to see my business plan for the next six months. happy-happy-joy-joy
It still looks bad for milk prices for the next two months. Let's see how many dairy farmers decided to bid the CWT program. Need to see at least 100,000 cows going to permanent retirement for any hope for the future.
We'll see if milk prices will jump up as fast as they fell at the end of 2008. Been managing the cows extra hard the past two months. Culled open low producers and problem cows. Milk production is holding fast, proof that cutting out losers only helps the business.
It still looks bad for milk prices for the next two months. Let's see how many dairy farmers decided to bid the CWT program. Need to see at least 100,000 cows going to permanent retirement for any hope for the future.
We'll see if milk prices will jump up as fast as they fell at the end of 2008. Been managing the cows extra hard the past two months. Culled open low producers and problem cows. Milk production is holding fast, proof that cutting out losers only helps the business.
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