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Re: Strategy

Posted: Fri Mar 16, 2018 8:51 pm
by Stocker Steve
Industrial diaries ship so many tankers per day that they have to have their access roads upgraded in many cases, and their continued expansion has filled processing capacity. Now there is a waiting list to have milk picked up...

We used to have a coop owned grade B butter plant. Many towns did back in the old days. Now cheese is the most popular product to produce. I assume this is due to shipping costs from flyover country.

Re: Strategy

Posted: Fri Mar 16, 2018 10:34 pm
by cbcr
There is no question that the dairy industry in in dire straits. Many are seeing their cost to produce the milk is higher than what they are receiving.

Dean Foods just earlier this month put over 100 dairy farms on notice in PA, KY, TN, OH, and IN that they would no longer take their milk June 1. Other processors have already said that they cannot take on any of them. So these producers are scrambling and trying to figure out what to do. Some are throwing in the towel and selling their herds.

It is a shame that the small family dairy farms are about to become a thing of the past.

Re: Strategy

Posted: Sat Mar 17, 2018 3:19 am
by Son of Butch
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.

Yes, tip your local dairy farmer. :)
Local Creamery enclosed suicide hotline phone # with dairy farmer's milk check last month.
(No joke) neighbor said At first he thought it was a prank when he opened his.

Re: Strategy

Posted: Sat Mar 17, 2018 3:35 am
by Son of Butch
TexasBred wrote:
Jogeephus wrote:
Stocker Steve wrote:
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.

In addition to economy of scale... (I know of one that owns a creamery)
they get a substantial premium for volume delivered... which is set so high others can't qualify for it.

With a volume premium, they never get hit as hard by a downturn and bcs they're always running full steam there is
never a lag time to gear up to capitalize on any market uptick. It all adds up to their bottom is never as low and their highs are always higher than other competing farmers.

Re: Strategy

Posted: Sat Mar 17, 2018 4:16 am
by Son of Butch
The only way for a smaller farm to compete would be some sort of a Quality premium with standards so high the
'industrialized' dairies would be unable to meet the requirements. (Grass Fed Butter?)

But so far the market place has been unwilling to pay a Quality premium large enough that would allow smaller farms
to compete. Consumer backlash on what is considered a consumer staple is just too great to pay Quality premiums large enough to matter.

Bottled milk cheaper than bottled water makes me sick.

Re: Strategy

Posted: Sat Mar 17, 2018 4:55 am
by Craig Miller
The same people who are willing to pay $12 a dozen for eggs at Whole Foods will pay for premium milk. Has anybody tried?

Edit: After I posted I remembered a lot of those people have been sold on almond or what ever kind of milk they're drinking now.

Re: Strategy

Posted: Sat Mar 17, 2018 9:34 am
by Jogeephus
Craig Miller wrote:The same people who are willing to pay $12 a dozen for eggs at Whole Foods will pay for premium milk. Has anybody tried?

Edit: After I posted I remembered a lot of those people have been sold on almond or what ever kind of milk they're drinking now.


Those are the very people who like to lighten their wallets. Maybe a faux-man-bun and one of those fake oreo ear ring things and I could sell truckloads of high priced milk with the assurance the cows were milked by Tibetan dwarves in a zen-like manner. :mrgreen:

Re: Strategy

Posted: Sun Mar 18, 2018 9:57 am
by greybeard
1982vett wrote:
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.

Therein lies the problem. It's all your fault. :hide:

Re: Strategy

Posted: Sun Mar 18, 2018 1:24 pm
by 1982vett
greybeard wrote:
1982vett wrote:
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.

Therein lies the problem. It's all your fault. :hide:

:???: I though I was going above and beyond by being wasteful of it..... :lol:

Re: Strategy

Posted: Sun Mar 18, 2018 1:31 pm
by Jogeephus
1982vett wrote: :???: I though I was going above and beyond by being wasteful of it..... :lol:


You are doing a great service by buying it and not that Almond Milk because its a farce and not really milk. Besides, the golfers in California need all the water they can get to keep their courses green and wasting it on food is simply deplorable.