Thursday, July 30, 2009

Low Costs?

(click to enlarge)

“The first chart is a graph of dairy margins (price minus cost) for each of the last 18 months for the 25 percent of producers who are the lowest cost producers in the U.S. These producers have actually made a profit over the last year and a half.”

Is there anyone who thinks the most efficient made money in all but two months of 2009? People who are in a position to know tell me that no more than 1% could possibly, possibly have made any money this year.

Notice, there is no source for the data.

As one looks through all the testimony, there seems to be a level of orchestration to much of the testimony.


  1. Wow John!
    How 'bout that Farm Bureau??? What thinking dairyman would waste any more dough on dues to that den of treachery??? Their solution: just keep on keepin'on; maybe the neighbor will drop before you do...
    We've always been told AFB's loyalty is to the grain guys; this damn well PROVES IT!
    So glad I only wasted one year's dues on FB!Maybe we outta take up a collection for their Iowa spokesman, so he can buy his parents a marriage license! Later...
    Nate Wilson

  2. You get that when the testimony is being paid for by someone with an agenda.

  3. Very interesting; how did this flake (Lang) get to where he is at the Farm Bureau? And what nutcase put together those graphs?
    As for the twenty-five percent lowest cost producers; I didn't realize that there are that many Amish farmers, producing so much milk.
    By the way; so what if some folks are better off than others if the programs are changed to help all dairy farmers? Sounds like Lang would be very happy if they changed the MILC program to his advantage?
    Furthermore, isn't a better price for farmers in this country what we all want? I for one don't give a darn about international trade; quit importing all the dairy products (AKA crap) from elsewhere and just give us our own market back.
    Wouldn't most producers agree to cap or even slightly reduce their production to ensure a fair milk price that is at least somewhat constant? (produce less milk, make more money - not a complicated thing, is it?) Wait a minute; what makes us think that if the milk supply is reduced the "market" would give us a better return? Please someone show me that the dairy market is fair - can't do it can you?
    Does your brain tell you that the processors and traders in this industry are fair to the dairy farmer? Or is it the same old, buy the raw material (milk) as cheap as you can and sell the finished product for as much as you can?
    Farmers in this country could feed the world - but the hungry cannot afford to buy the excess we have, if there truely is an excess?
    Couple more things before I get off my soap-box.
    I heard that the price of milk replacer is going up - excuse given for the increase; not enough quality milk powder available at a reasonable price, unreal.
    By chance has anyone noticed the retail prices of dairy products drop much yet? Me either.
    Reduce supply? It would take away an excuse, but good luck...
    If I thought I could help you poor dairy farmers I would, but after 34 years I'm not coming out of hiding for a lost cause.
    Jimmy Hoffa
    Money Pit Acres