The Price of Raw Milk or Shares

Too many of us are used to seeing milked priced at $3 per gallon the store and assume that means if one sells milk or shares at that price, there is some profit to be made because, after all, that is the store price.

Please remember that dairies are subsidized. They do not make a real profit at what they are selling their milk for, though yes, it is much less than $3 a gallon before it hits the store.

If you are farming in humane way, giving the animals a quality of life, if you are feeding a healthy, more natural diet and giving individual care, you are offering a much higher quality product than BIG AG is offering.

Your competition isn’t BIG AG’s inferior product. Do not price it as if you are operating on government farm subsidies and cranking out a product from a machine.

Nationally, herd shares in goat herd are $10-12 a week for a single share, which means the consumer receives one gallon of milk. Cows shares are typically $6-8 per share, which also means the consumer receives one gallon of milk. This is not a regional price. The price is basically at least the above prices in more rural areas or economically challenged areas.

Your time is of value. Farmers cannot operate at a loss and expect to succeed or even last in farming, so keep that in mind.

When you sit down to come up with your costs to produce a single gallon of milk, you must consider your purchase price of your stock, your total yearling feed cost per animals (including the value of your pasture), vet care, over the counter medical expenses, minerals, you must include these same costs for male breeding animals and offspring, fence installation and barn structure costs and milk equipment costs. Once you do, you will see how prices under $6-8 for cows or $10-12 on goats leaves  you working very, very hard – tirelessly – to give an excellent product of value away for almost nothing.

This is a link to a SPOT ON video about this subject

rawmilkeconomics

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s