Been real busy the past month trying to make ends meet and get our operating note renewed with the bank. I think we're close to coming to agreement on additional collateral the bank is requesting to continue our loan. Higher interest fees and reduced line of credit will be included in this six month renewal. We need to see increased milk prices in the next few months to show that we're heading back into (at least) break even territory.
Another CWT program probably will not be seen this year. Maybe before spring flush hits the industry in March and April there might be a need. It all depends how many dairies make it to year end. Four more hard months to go.
Have already seen some fellow board members drop out of business in the last CWT program. Don't know how many more will leave the business by the end of the year. If we all (and I mean ALL) remaining dairymen reduce production 5% to 10% and keep the production down, we will ALL see better milk prices in the near future.
No adding cows if the price climbs, control the production to meet only 98% of the need. If 2% overproduction caused our price to drop $6.00/cwt, then 2% underproduction should increase our price $6.00/cwt. I don't mean going from $10.00/cwt to $16.00/cwt to get back where we were. I'm talking about milk selling for $22.00/cwt and staying there for several years to come. We all need the milk price to stay high in-order to recover from the massive losses suffered this past year.
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