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The economics of low milk price
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<blockquote data-quote="regolith" data-source="post: 1228737" data-attributes="member: 9267"><p>I thought this might be of interest to some of you who aren't all-grass producers.</p><p></p><p>I can't say NZ dairy farming is mostly all-grass any more - the recent drought years have pushed a lot of dairymen who normally wouldn't buy feed, into buying it. And once they start they generally don't stop, even when the milk income drops as it has done this year. Chasing production numbers gets addictive, I guess.</p><p></p><p>We're not in a drought (yet) in this area, just an extended dry spell that has been reducing grass growth rates for the past several weeks. I culled down to my winter numbers and dried off the lightest 2 yr olds in January. Following discussion with the farm owner and farm consultant today the decision has been made not to purchase any feed. We have a small amount of silage and hay that was made on-farm.</p><p>In other words, if it doesn't rain in the next week or so me and the cows are going to have a long winter holiday.</p><p>We've already done the normal annual production (to May 31st) for this farm, and could come very close to breaking last year's record production if I was able to keep the remainder of the cows in-milk through April. Calving again in July.</p><p></p><p>This is one of the challenges of sharemilking - both parties share the milk income and the costs of purchased feed, so any such decision is by mutual agreement. In this instance, we're both on the same page, so no problems.</p></blockquote><p></p>
[QUOTE="regolith, post: 1228737, member: 9267"] I thought this might be of interest to some of you who aren't all-grass producers. I can't say NZ dairy farming is mostly all-grass any more - the recent drought years have pushed a lot of dairymen who normally wouldn't buy feed, into buying it. And once they start they generally don't stop, even when the milk income drops as it has done this year. Chasing production numbers gets addictive, I guess. We're not in a drought (yet) in this area, just an extended dry spell that has been reducing grass growth rates for the past several weeks. I culled down to my winter numbers and dried off the lightest 2 yr olds in January. Following discussion with the farm owner and farm consultant today the decision has been made not to purchase any feed. We have a small amount of silage and hay that was made on-farm. In other words, if it doesn't rain in the next week or so me and the cows are going to have a long winter holiday. We've already done the normal annual production (to May 31st) for this farm, and could come very close to breaking last year's record production if I was able to keep the remainder of the cows in-milk through April. Calving again in July. This is one of the challenges of sharemilking - both parties share the milk income and the costs of purchased feed, so any such decision is by mutual agreement. In this instance, we're both on the same page, so no problems. [/QUOTE]
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The economics of low milk price
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