Posted by Bruce from Can. on July 29, 2015 at 04:11:11 from (74.12.72.116):
In Reply to: dairy setups posted by 730virgil on July 28, 2015 at 19:35:52:
Big or small , all dairy farms have one thing in common. There is no guarantee That you will get enough money for your milk to cover your cost. Or that there will be a market for the milk you have produced. Economy of scale only goes so far, if cost of production out strip the price the farmer receives for his milk, big or small you lose money. How long you can lose money sending out milk at a loss, depends on how much you owe,and how much depend you wish to take on , while waiting for the price to come back. The old phrase "the bigger they are, the harder they fall" comes to play here. If you have several off shore workers milking cows at your mega dairy, they still need to be paid. But if it is just you and your wife,one of you can take an off farm job,scale back, and hunker down till the price comes back . Nothing new here,cheap food is just a way for governments to buy votes, and as long as governments around the world are giving farmers money to over produce food, be it milk ,corn , hogs ,whatever, they will distort the true price . What is a farmer to do ? Try to do what will work best for you in the short term to say in the black. If that means milking 50-100 cows in a out dated tie barn, and still be profitable ,so be it. Moderen facilites do not guarentte a profit. Bruce
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