Monday, August 23, 2010

Margins



(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.
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3 comments:

  1. AnonymousAugust 24, 2010 at 8:28 AM

    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.

    thanks.

    ReplyDelete
  2. AnonymousAugust 25, 2010 at 3:53 AM

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

    ReplyDelete
  3. SkipAugust 25, 2010 at 7:39 AM

    But the farmer still gets $13.50 right?

    ReplyDelete