It'll go down lower than 17 but premiums will keep the take home higher than 17... it will go up to 21-22 range (including premiums) so I guess I am more or less agreeing with what you are hearing pl. It'll be all about expense control and keeping those ladies milking with good feet under them while getting them pregnant... with feed being such a large portion of costs its always were we all like to look but, more or less, we all deal with those same costs... I like to pay attention to the other "small " things more to refocus efficiency and make gains by adding up all the "little" things.
I saw that article... he'll be right if the world economy gets better as the ever increasing demands of the developing world matter more and more to our prices... i just don't see a big improvement coming in that arena. Our main export countries will continue to do well but we need much more demand growth (or a big and unlikely contraction in production somewhere) to get the prices that he is putting forth. I hope that he is right though.
Texas up 8.6% in production...........How does that work with the worst drought in years? Where is the price milk going according to those who know? It's going the same place crap goes when you flush the toilet........Also just before coming over here, I read that cheese continues to drop, unless consumers uptick demand...........well. Today in Bismarck at a grocery 5 lbs sliced American cheese was a whooping $19.99. $4.00 a lb. Market commodity cheese is a long way from that. It won't probably won't be long before all are urged to lock in 16.00! No one at this time 2010 predicted 2011 prices. DFA meeting in September was predicting 13.50 Class III averages for 2011. Not long after people jumped in on upsurge & locked in $15.00. Whole thing's nothing more then a Ponzi Scheme. They're about as accurate as the weatherman IMO.
Last edited by Smallest Dairy Farmer; 02-08-2012 at 10:32 PM.
Well, we're praying it doesn't fall into the 14's. If we start storing 2% of our production, don't beef enuf dairy cows/heifers, AND have an early spring?, it'll get ugly. At least DB's new, improved super lube will contain a higher % of butter, to give you that "sweet creamy" effect!!