It's been a few months since my last post (May 2011) and things have been getting worse. I realize that we did have a short run-up in Class III milk prices. But that was not high enough, nor did it stay long enough to really be much help for most dairy-farmers. The HUGE losses incurred in 2009 & 2010 for several months (16 to 18 months) were not recouped with 3 or 4 months of barely fair milk prices. IMHO.
Feed costs still remain too high and Class III milk prices still remain too low. I'm confused by articles written lately talking about how "higher milk prices?" this year have helped dairy-farmers make a profit?!
I must be in the wrong part of the country and have the wrong kind of dairy operation to enjoy these higher milk prices and profits. My mailbox milk price is a blend of 1/3 class I, 1/3, class II/IV, and 1/3 Class III utilization in our Federal Market Order.
$400/ton whole cotton seed, $360/ton milk cow hay (average quality), most by-products in the high $250+/ton range, and baled corn stalks at $225/ton. Crazy, crazy, crazy!
I'm going to do a little research and look for Average National Cost of Production and Average Milk Price. I've seen some numbers where COP is $4/hwt higher than AMP.
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