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<blockquote data-quote="cow pollinater" data-source="post: 1214424" data-attributes="member: 14661"><p>At face value I agree with you but there are quite a few different takes on how to deal with a down market and the most common one that I see is to do business as usual and just bytch louder. :lol: Dairies have been on a boom or bust cycle for quite a while. When they bust they want the government to step in and by the time they get the details all worked out the market is back and nobody wants the government involved in their business anymore. </p><p>There will be a few sharp pencils that do sit down and figure out which cows are making money and which ones aren't but most of the big guys will do business as usual and cull the cows that just flat have to go and keep the rest.</p><p>We also have to remember that there are more factors in play than just milk price. Fuel and feed are huge expenses and neither of them are near what they were in 2009(the last crash) so that softens the blow quite a bit. Plus the guys who were not paying attention all got decimated in 2009 so the herds that are left are running a pretty tight ship.</p><p>It's hard to make a prediction as to what will happen as the economics are different from farm to farm and open to interpretation by every owner but I kind of doubt it will really have enough of an impact to really effect the price of quality beef calves.</p></blockquote><p></p>
[QUOTE="cow pollinater, post: 1214424, member: 14661"] At face value I agree with you but there are quite a few different takes on how to deal with a down market and the most common one that I see is to do business as usual and just bytch louder. :lol: Dairies have been on a boom or bust cycle for quite a while. When they bust they want the government to step in and by the time they get the details all worked out the market is back and nobody wants the government involved in their business anymore. There will be a few sharp pencils that do sit down and figure out which cows are making money and which ones aren't but most of the big guys will do business as usual and cull the cows that just flat have to go and keep the rest. We also have to remember that there are more factors in play than just milk price. Fuel and feed are huge expenses and neither of them are near what they were in 2009(the last crash) so that softens the blow quite a bit. Plus the guys who were not paying attention all got decimated in 2009 so the herds that are left are running a pretty tight ship. It's hard to make a prediction as to what will happen as the economics are different from farm to farm and open to interpretation by every owner but I kind of doubt it will really have enough of an impact to really effect the price of quality beef calves. [/QUOTE]
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