The Dairy Industry Braces Itself
Grow cows, feed cows, milk cows. Dairy farming is not all that complicated when it is boiled down to these basics. Of course, long-time readers of Up on the Farm understand just how complex modern agriculture has become in order to compete on world markets to provide the safest and least expensive food supply in the history of humankind. In my business, we help dairy producers develop month-by-month budgets to help them create strategies to meet the demands of the business in the months ahead.
Last November, this column reported that 2009 was shaping up to be a ‘rough’ year for dairy producers because the projected milk price had fallen from $20 to $17 per hundred weight. Since then, the bottom has fallen out and the milk prices farmers are staring at now are a mind-numbing $13.50 average for 2009. Prices for milk produced in February are projected in the $11.50 range. This is about half the price of milk just a year ago. Read the rest of this entry…