Starting a dairy farm

[Duffster]

I'll say it again...

Milk is not going to stay low forever.

Anyone who can make it through this hard time will be in great shape when the prices go up. Everyone I know of in the dairy industry is operating at a loss right now. They are holding out with the knowledge that eventually prices will come back up to where they can make money again. The only unknown is how long it will take for the prices to come back up.
The same market cycles happen in all farming sectors.

$15 dollars is up.

 

[RichZ]

$15 is definitely up from where it was. But the trouble is, it costs over $17/hundred weight to produce the milk. $15/hundred weight is still operating at a loss.

 

[Duffster]

$15 is definitely up from where it was. But the trouble is, it costs over $17/hundred weight to produce the milk. $15/hundred weight is still operating at a loss.

Obviously everyones costs will vary.

The general consensus of friends of mine that dairy is that their cost is about $14.

I guess that was kind of my point though. If a guy is depending on $17+ to make money I think I would get out now.

 

[Waldershrek]

What is considered a "good" milk price?

 

[Iplayfarmer]

Obviously everyones costs will vary.

The general consensus of friends of mine that dairy is that their cost is about $14.

I guess that was kind of my point though. If a guy is depending on $17+ to make money I think I would get out now.

I agree with that. If someone set themselves up so that they can only make money at the top of the market, now is when they have to get out. They'll lose their @$$ on the deal, but no one forced them to take on overhead that drives their operating costs up.

 

[Big Bri]

$1.60 ??? No need to buy cows ... just buy it at Steve's store and resell it ... Been years since I bought a gallon for a buck sixty ...

Here Local milk is $5 a gallon and if you buy the walmart junk its $4

 

[Duffster]

What is considered a "good" milk price?

Good question.

It really depends on your costs.

I agree with that. If someone set themselves up so that they can only make money at the top of the market, now is when they have to get out. They'll lose their @$$ on the deal, but no one forced them to take on overhead that drives their operating costs up.

Exactly!

 

[RichZ]

I guess a good price depends on where you are. Here in upstate New York, it costs about $17/hundredweight to produce milk. I wasn't thinking when I posted that $17 as a definite number. As Duffster pointed out, in Wisconsin, the cost is $14/hundredweight. So, a good price is above what it costs you to produce the milk. Production costs should vary regionally, just as the cost of fuel, feed and hay vary regionally. All of that factors into your cost to produce the milk.

 

[valley]

Sounds to me like you are going about this the right way. You know you will be working hard. You know keeping out of debt is the way to go. The market is there and will only improve. If the economy goes completely south you will have the local market. If things get real bad people will come to your place with their own containers, was done in WWII, people use to come to our ranch and we were not a dairy. We had no machinery to speak of. Good luck, not everyone can make a dairy work but I think you can make it work. Richard

 

[Waldershrek]

I have been doing alot of reading and have been filling out alot of spreadsheets coming up with costs for fuel, seed, etc....


I'm still unable to find anything that tells me how much I should be feeding the cows. I've been reading alot about TMR and it gives percentages for silage, hay and grain but how many pounds does that equate to. for maths sake lets say I have 100 cows.