Re: Price of milk

Posted by RodInNS on August 01, 2007 at 08:16:29 from (24.224.246.156):

In Reply to: Re: Price of milk posted by barnrat on August 01, 2007 at 07:10:10:

Part of the problem we have up here is that things are structured in favor of the big operations, and policy is made to protect them, regardless of what the speech is...
One of the biggest problems here right now is high quota values which is driving the cost of production up. There are some of these large operations that are in very serious finincial situations because of the doubling and tripling the sizes of their operations in a short time. I think some of them should just be allowed to pop and get it over with, but decisions are made to protect the weakest. If they went belly up, that would correct the quota price to some degree.... Right now policy is being made to steal quota from the small operations to finance the larger ones. That said, we still don't have the mega operations that you would have in the US. IT just isn't feasible here due to quota costs.

The other factor that we're dealing with here is that we're trying to match production as closely to demand as possible. There really isn't any allowance for seasonal milk production, or even much seasonal variation in production. We have some flexibility in when we produce it, but not much, and it's getting tighter all the time.
It's actually getting cheaper to run a confinement system because it allows for more consistent week to week production, and we can't really afford to have inconsistent production. Inconsistency costs too much money here.

Trucking is always gonig up here too. Ours is equalised to a set rate per hectoliter.... but it goes up all the time.

Rod

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