Strategy

For the dairy folks and/or beef folks with questions about udders, milk and mastitis.
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Jogeephus
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Strategy

Postby Jogeephus » Thu Mar 15, 2018 7:06 pm

Anyone have any ideas on the best strategy to overcome this hump? I bought milk at the grocery store last week for $1.50/gal. which just seems wrong.
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Caustic Burno
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Re: Strategy

Postby Caustic Burno » Thu Mar 15, 2018 7:10 pm

Jogeephus wrote:Anyone have any ideas on the best strategy to overcome this hump? I bought milk at the grocery store last week for $1.50/gal. which just seems wrong.


How? That is less than half price here at Wally World.
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Re: Strategy

Postby callmefence » Thu Mar 15, 2018 7:10 pm

Get ya some a them thar food stamps.
You won't even notice prices high or low.
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Re: Strategy

Postby Bigfoot » Thu Mar 15, 2018 7:56 pm

I sure feel sorry for the dairy guys/gals.
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Re: Strategy

Postby slick4591 » Thu Mar 15, 2018 8:00 pm

Organized buy outs on dairy farms. You'll soon see Wal-Mart as one of the tops in milk distribution.

The start of it right here.
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Re: Strategy

Postby Caustic Burno » Thu Mar 15, 2018 8:06 pm

I don’t understand dairy.
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Re: Strategy

Postby Stocker Steve » Thu Mar 15, 2018 8:26 pm

Caustic Burno wrote:I don’t understand dairy.


There is a new business model out there. Big industrial dairies are using it to expand in the mid west. It includes an operational recipe, an imported labor force, and a focus on ROE. These industrial dairies appear unstoppable, unless grain prices rally significantly.
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Re: Strategy

Postby 1982vett » Thu Mar 15, 2018 9:51 pm

Jogeephus wrote:Anyone have any ideas on the best strategy to overcome this hump? I bought milk at the grocery store last week for $1.50/gal. which just seems wrong.

Dang....guess I should look at the gallon jug prices.....that's less than we pay for a half gallon. Don't see why I couldn't pour a 3 quarts down the drain rather than a quart as long as it's cheaper. We don't use a lot of milk around here. Waste more than we use.
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Re: Strategy

Postby ez14. » Thu Mar 15, 2018 10:50 pm

Strategy? Well in the dairy business we only have one strategy make more more more until the bank says your done
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Re: Strategy

Postby TexasBred » Fri Mar 16, 2018 8:41 am

Caustic Burno wrote:I don’t understand dairy.

They're just like everybody else. If milk went up to $25 a hundredweight every dairyman in the country would be sitting at the bank in the morning to get money for more cattle. In no time the market would be flooded with an overabundance of milk and prices would tank again. they just can't stand prosperity.
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Re: Strategy

Postby Jogeephus » Fri Mar 16, 2018 10:26 am

TexasBred wrote:
Caustic Burno wrote:I don’t understand dairy.

They're just like everybody else. If milk went up to $25 a hundredweight every dairyman in the country would be sitting at the bank in the morning to get money for more cattle. In no time the market would be flooded with an overabundance of milk and prices would tank again. they just can't stand prosperity.


Texbred, why you wanna go stepping on toes? :lol2: I was looking for a better solution ...... something like a bigger trailer maybe. Seriously though, I'm thinking herd reduction might be the answer right now. With this you won't bleed out so fast.
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Re: Strategy

Postby Stocker Steve » Fri Mar 16, 2018 11:05 am

Jogeephus wrote:Seriously though, I'm thinking herd reduction might be the answer right now. With this you won't bleed out so fast.


Great point. With DHIA records, it is pretty easy to figure out that a full barn can work against you at below cost prices. Now if beef producers did this...

But, figuring out your breakeven won't change that dairy is going industrial just like chickens and hogs did. :(
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Re: Strategy

Postby Jogeephus » Fri Mar 16, 2018 1:43 pm

Stocker Steve wrote:
Jogeephus wrote:Seriously though, I'm thinking herd reduction might be the answer right now. With this you won't bleed out so fast.


Great point. With DHIA records, it is pretty easy to figure out that a full barn can work against you at below cost prices. Now if beef producers did this...

But, figuring out your breakeven won't change that dairy is going industrial just like chickens and hogs did. :(


Though it might be too late I've always thought the purchase of a pasteurizer and direct marketing farm to table might be a solution but at the moment existing contracts prevent this but where there is a will there is a way.
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Re: Strategy

Postby Craig Miller » Fri Mar 16, 2018 1:49 pm

I think my milk cost have just gone up.

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Re: Strategy

Postby TexasBred » Fri Mar 16, 2018 6:57 pm

Jogeephus wrote:
Stocker Steve wrote:
Jogeephus wrote:Seriously though, I'm thinking herd reduction might be the answer right now. With this you won't bleed out so fast.


Great point. With DHIA records, it is pretty easy to figure out that a full barn can work against you at below cost prices. Now if beef producers did this...

But, figuring out your breakeven won't change that dairy is going industrial just like chickens and hogs did. :(


Though it might be too late I've always thought the purchase of a pasteurizer and direct marketing farm to table might be a solution but at the moment existing contracts prevent this but where there is a will there is a way.

Got a few operators scattered around the county here marketing their milk to some of these amish/mennonite type communities. They make mostly cheese and butter but some actually bottle and sell raw milk. They pay the milk producer over twice the price the regular milk coop is now paying so it's a good deal for both. One dairy delivers them about 20,000 lbs. a day. The others I'm aware of are smaller. Not aware anyone capable at this time of producing Grade A milk for sell in grocery stores, etc.

Steve one question. Those "industrialized" dairies you mention. How is their milk priced and to whom do they sell it or do they handle and process it from the cow to the home refrigerator.
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