Re: dairy farmers

Posted by Weldon on January 11, 2006 at 08:03:30 from (71.30.71.186):

In Reply to: dairy farmers posted by Tuggle on January 10, 2006 at 16:00:50:

We dairy in North Carolina. Price of milk fluctuates monthly.Through November, this year averages $15.63/cwt. 2004 averaged $16.83/cwt. ( included in that price is a .25/cwt quality premium). From those prices deductions for national advertising-- .15/cwt ; a charge for hauling of milk to processing plant-- .71/cwt. In November a hauling fuel surcharge was authorized by the co-op. It was .15/ cwt. So about $1.00/cwt is now deducted from the "pay price" to the farmer. 2002 and 2003 prices were much lower- $12 to $13 range.It was tough.
In 2004 May and June price hit $20.00/cwt up from $12-13 range of 2003. Farmer price went up $7-$8/cwt- retail price went up $18.00/cwt same period. Farmer price quickly dropped back to $16, retail price dropped a little but nowhere near as much as it had increased.

Everything I read is forecasting price to drop $1.50 or so for 2006.This on top of increased cost of fuel and fertilizer, etc. is going to make for a tough year. Already seeing some auction flyers for dairy dispersals and have heard of others already sold privately.

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