Update on Milk Price

Discussion in 'Homesteading Questions' started by Farmer Brown, Jun 14, 2004.

  1. Farmer Brown

    Farmer Brown Well-Known Member

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    Just got a Ck for month of May milk production. Dropped some to a current price of 1.618 per gallon for 3.53 butter fat grade A milk. Just like to keep everyone posted on who is really making the profit. FB
     
  2. Torch

    Torch Well-Known Member

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    OK, if the farmer is getting $1.62 per gallon and I'm paying $3.50, who's getting the $1.88?
     

  3. daeve

    daeve Well-Known Member

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    I buy my milk directly from Wright Dairy and am paying $3.25 a gallon. I had certainly rather them make a few cents than pay about the same for an inferior product and give the money to big biz.
     
  4. Ken Scharabok

    Ken Scharabok In Remembrance

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    "OK, if the farmer is getting $1.62 per gallon and I'm paying $3.50, who's getting the $1.88?"

    Well, let's see. The milk processor has to pick up the milk on probably a daily basis (365) in a special truck, the milk has to be taken to a central processing plant where it is pasteurized, tested and bottle under federal inspection. Then it goes into refrigerated storage until delivery to the retail outlet, also in a special truck, where it sits in a refrigerated case until purchased. I assume both the processor and retailer would like to make a bit of profit on the milk, as well as to cover expenses (including national advertising to keep up demand and product liability insurance).

    Last I heard the producer was getting about four cents out of a box of corn flakes.

    Ken S. in WC TN
     
  5. Jackpine Savage

    Jackpine Savage Well-Known Member

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    Like the saying goes, farming is the only business where you have to pay retail , sell wholesale, and pay the freight both ways. The dairyfarmer pays to have the milk hauled to the processing plant, and pays into both state and federal dairy 'checkoffs' to do all the advertising.

    That said I 'think' that the dairy producer gets the largest share of retail price of all the different types of farming. If I remember correctly it was close to 40% of retail.
     
  6. Jan Doling

    Jan Doling Well-Known Member

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    $3.75 a gallon here this week. Maybe I should be milking the geese?!
     
  7. Shrek

    Shrek Singletree Moderator Staff Member

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    An aquaintence in NYC is paying almost $4 for a half gallon. He said he might have to start milking rats for his kids milk. :)