Dairy vs. Beef

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We were in the dairy business for over 45 years. We don't have much to show for it. Through all the ups and downs it was a good life. More smiles than tears and a great way to raise a family.
 
rkm":364jazbt said:
We were in the dairy business for over 45 years. We don't have much to show for it. Through all the ups and downs it was a good life. More smiles than tears and a great way to raise a family.

I bet you don't regret it. Check your PM box.
 
HOSS":3famcy2a said:
BertS":3famcy2a said:
sounds like raising replacement dairy cattle could be the way to go? :idea:

Guy here locally only raises Holstien heifers. Does pretty well. He has 2 to 3 hundred at any given time. He sells them as replacements to dairy farms.

I used to work with a guy who quit a $45,000 job to raise replacement heifers on a contract with a big dairy that also gave him first chance on the bull calves as a side business of his own. He raises them, AI's them as requested and is paid so much per bred heifer raised, with performance bonuses. Some periods of hard work, but he was doing it as a side job and doing well enough at it before he quit. As far as I know, he's still doing it.
 
tncattle":q0tji4pf said:
I think my math is wrong, ya'll correct me where I need it.

If 20 cows give an average of 5 gal. of milk a day at $20 per hundred weight and 1 gal. weighs 8.33 pds. then that works out to $166.60 gross a day. Am I even close to figuring this right?

100 gal. x 8.33=833 pds
8.33 x $20.00=$166.60 a day gross

I don't have any personal experience with this, but I believe a commercial dairy cow gives more than 5 gallons a day. I've heard as high as 8-10. But maybe that's just peak, and the average is 5/day for a given lactation.

Others will know and will likely chime in.
 
ArmyDoc":3jspbq0u said:
tncattle":3jspbq0u said:
I think my math is wrong, ya'll correct me where I need it.

If 20 cows give an average of 5 gal. of milk a day at $20 per hundred weight and 1 gal. weighs 8.33 pds. then that works out to $166.60 gross a day. Am I even close to figuring this right?

100 gal. x 8.33=833 pds
8.33 x $20.00=$166.60 a day gross

I don't have any personal experience with this, but I believe a commercial dairy cow gives more than 5 gallons a day. I've heard as high as 8-10. But maybe that's just peak, and the average is 5/day for a given lactation.

Others will know and will likely chime in.

I just used 5 gal. as a guide and it was easier to do the math.
 
The average milk cow in the USA gives approx. 20,000 lbs. per lactation (8-10 months?).

They prolly only average producing for 3-4 lactations lifetime.

If I remember correctly, it takes around 2-3 lbs of feed to produce a lb of milk, including body maintenance.
 
MikeC":ou66ql1a said:
The average milk cow in the USA gives approx. 20,000 lbs. per lactation (8-10 months?).

They prolly only average producing for 3-4 lactations lifetime.

good info Mike, thanks
 
You guys are forgetting a major aspect...type of dairy cow. Holsteins milk is used for milk (alteast around our area anyway) while Jersey milk is used for yougort (sp?), cream, and butter. In our area we have a large yougurt plant, so the prices for that are extra high. My aunt and uncle have a large Jersey dairy...with really good genetics (they have a lot better size and wieght gain). These really good genetics are bringing them in extra money, they sell embryos...European dairies just love them. Alhough dairy breed calves aren't worth as much they also have calves to sell.
 
FarmGirl10":307ix27d said:
You guys are forgetting a major aspect...type of dairy cow. Holsteins milk is used for milk (alteast around our area anyway) while Jersey milk is used for yougort (sp?), cream, and butter. In our area we have a large yougurt plant, so the prices for that are extra high. My aunt and uncle have a large Jersey dairy...with really good genetics (they have a lot better size and wieght gain). These really good genetics are bringing them in extra money, they sell embryos...European dairies just love them. Alhough dairy breed calves aren't worth as much they also have calves to sell.

Good point. To my knowledge, dairies have always been paid according to butterfat percentage. The higher the fat content, the higher the paid price.

Butterfat production is genetic in general but the feed ration also has to be conducive to high fat production.

Also, the higher the milk production of a cow, the lower the butterfat percentage, as a rule.
 
They also get paid for milk protein. There is a base price with a bonus for butterfat and protein above a certain level. On the down side they also pay for trucking the milk to the processor. Our average milk per cow in Washington has been the highest in the country for several years and if I remember correctly it is about 73 pounds per cow per day.
 
tncattle":wd5dbbdq said:
TexasBred":wd5dbbdq said:
On top of the great hours there is the big initial investment. Replacement dairy cattle are costing $2,000 and up right now depending on your part of the country. Milk prices are good at over $20 per hundred-weight but have gone as low as $9.00 per hundred-weight. For a dairy with any debt load at all even excellent management will have a hard time just keeping it afloat.
Can you explain $20 per hundred weight? When dairy farmers sell there milk is it not by the gallon?

TN, milk is purchased by the cooperatives by the hundredweight. At 8.6 lbs. per gallon it's easy to convert the price per gallon at about $1.72 per gallon. This is gross sales price. Deductions include hauling which can be over $1.00 per hundred weight, as well as penalties for high somatic cell count, low butterfat and low milk protein. Only business I know of where you sell your milk, have to pay them to haul it to their plant and still don't know what price you're going to get until it's gone for 30 days.
 
The dairy farm nearby its been a family business for years, and they also own the company that picks up the milk all around here. He told me a few weeks ago they had to go to all sexed semen because they were getting 70% bull calves.
His dairy runs a 3.2 to 3.5 butterfat on his holsteins.

I did read an article a couple months ago that said milk is supposed to get up to $6.00 gallon in the stores by this summer. Its already $4 so it probably will (and I realize that's not all profit to the dairy)

At the local salebarn a lot of the holstein cows were around 4 or 5 yr olds so that's probably about right for their lifetime of production on a dairy farm. I'm still kicking myself for not buying a 2 yr old open jersey cow that sold for 15 1/2 cents a pound.

Its a lot of work, they have a fella come in at 3 am but its raised their family and their grandchildren. Liked we talk, if a person has to go out and buy the acreage at $2500-$3500 acre you can't make it, but if you've already got the farm then you could get by. I'm sure some years would be lean, and some better.
 
I come from an area that has a lot of dairies. North of me there's a county that pretty much every farm is a dairy. THey all seem to be doing pretty good, but they also do grain/hay farming so unless they have over 300 head of cows they don't need to buy much feed, just additives. Only now they have a problem, expansion is nearly impossible, land is going for $10,000 an acre. :shock:

The really successful dairies in our area do more than just sell milk and calves. My aunt and uncle sell embryos, one of my friends families have a milk trucking business (ten trucks on the road), and one of my mom's friends was getting in the red but his daughter wouldn't hear his talk about selling out, so they bought a cheese processing thinger-ma-jig and are making a boat load of money off of it.

So depending on what you do with your heard has a major effect on profibility.
 
Just goes to show that dairying alone does not always pay so you have to branch out into something to compliment milking cows.
 
Around here if it wasn;t for the women there wouldn;t be many dairys that made money. They eitther help milk or do all of the milking and the hubby has outside income.
 
You'd be suprised at how many dairies have women milking. Women relax the cows, from how I understand it, and they consistantly produce more milk. I don't think its a whole lot more milk, but its still more. And no this is not just one dairy, i've heard it from a lot of different ones.
 
Dun and Farmgirl you're both more right than you realize. In this part of the country, the lady spends the money, the old man hangs out either at the sale barn or the local coffee shop and the illegal immigrants do the milking and everything else. Then they wonder why they have to keep borrowing money or sell out everytime the govt. has a buyout program.
 

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