Monday, August 23, 2010


(click on image to enlarge)

With dairy farmers not able to pay their bills, the price of the above government contract is obscene.

With the price of the additional butterfat figured in , the per hundredweight "value" is pushing $80.


  1. John,

    Hey i read this a little different than you did. the end result is still a rediculous profit that the processor makes.
    im reading a pack is 24 oz. this pushes the price to be at $25/gal. if there is approx. 9-10 gallons per hundredweight...

    as you see, there might be more behind this than you thought? again, as i am reading this, this is fluid milk right? just to make sure i am not way off on this.


  2. I think it comes out to $290/cwt!!!!!

  3. But the farmer still gets $13.50 right?