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Beef vs. dairy
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<blockquote data-quote="SRBeef" data-source="post: 977203" data-attributes="member: 7509"><p>I did not express myself well and thank you for correcting me. True large dairies are not in one to one direct "competition" with a small startup dairy across the road. If they sell to a processor they will likely both get the same price for their milk.</p><p></p><p>What I was trying to say though is that a large, highly capitalized dairy often has a lower cost of production per gallon of milk and may likely survive at a lower bulk milk price where a small startup operation can not. </p><p></p><p>That is at times not true because the larger highly mechanized dairy may also be highly leveraged financially. However there are economies of scale in a larger, more mechanized, capitalized operation. That can only be equalized if a startup markets their milk differently. Not really my area of expertise but something I have seen in various dairy operations.</p><p></p><p>Jim</p></blockquote><p></p>
[QUOTE="SRBeef, post: 977203, member: 7509"] I did not express myself well and thank you for correcting me. True large dairies are not in one to one direct "competition" with a small startup dairy across the road. If they sell to a processor they will likely both get the same price for their milk. What I was trying to say though is that a large, highly capitalized dairy often has a lower cost of production per gallon of milk and may likely survive at a lower bulk milk price where a small startup operation can not. That is at times not true because the larger highly mechanized dairy may also be highly leveraged financially. However there are economies of scale in a larger, more mechanized, capitalized operation. That can only be equalized if a startup markets their milk differently. Not really my area of expertise but something I have seen in various dairy operations. Jim [/QUOTE]
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