Saturday, November 21, 2009

California Money Pit

(Click on image to enlarge)

Dairy operations in California have lost nearly $4/cwt over feed cost since January 2009. Given, that California now produces 22% of the nations milk, one might think that on the other side of the continent there would be some expressions of concerns - hardly a peep.

Obviously, it will take 10 months of $4/cwt over feed cost for California to climb out of the pit.


  1. john--there has been a great deal of concern voiced by california producers. They have the advantage of working together in a moer cohesive manner than we tend do out east. Not everyone agrees but they seem to have a consistent message.

  2. john, there is a saying that if you live by the sword you will die by the sword. in the era of cheap feed they had the advantage and ran with it, the lenders gave them enough money to hang themselves. lenders east of the mississippi learned hard lessons a few years ago and have had more restraint, i suspect that they will even be more cautous now.