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Mega-dairies - cost plus contracts?
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Kooiker
Posted 10/17/2018 08:15 (#7051419 - in reply to #7051409)
Subject: RE: Mega-dairies - cost plus contracts?



dairyman78 - 10/17/2018 08:09 There are a lot of rumors and speculation on these mega dairies, but just lately a reliable source shared with me their cost of production. Even with their huge investment their cost of production is incredibly low probably because of their size, scale, and management. My opinion is big changes are occurring in the dairy industry.





I'd suspect that its very similar to a small hog guy farrowing 200 sows in his own barn vs a 5000 sow farrowing unit.


You'd like to think that the guy with 200 sows using old paid for buildings with no debt against them can compete (I'm talking strictly cost of production) but the honest truth is, he can't.      We tried for way too long and like they say, "if you can't beat em, join em".







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