Re: Question for Bruce on milk marketing???

Posted by Bruce from Can. on December 02, 2015 at 08:31:48 from (184.151.37.91):

In Reply to: Re: Question for Bruce on milk marketing??? posted by JD John on December 02, 2015 at 07:13:00:

You are correct John , quota is hard or should I sway slow to squire . You can buy quota one of two ways . 1 buy out an ongoing operation, land , cows quota every thing. 2 purchase quota over the Quota Exchange. To buy quota on the exchange you must have a milk producer licences number, and you can only bid for 10% of what you currently hold . Eg if I had 100 kg of quota , the. I could bid to buy as much as 10% more on any given exchange. The exchange is run each month , by the marketing board. The price of quota is capped at $24,000.00 per kg, and demand usually out strips supplie . So while you may bid for 10 kg, you might only get 1 kg of quota. And because supplie is limited , it always sells at the maximum capped price of $24,00.00 . You can sell quota the same way, but you can sell all or part of your holding on each exchange . Expansion for me is slow , and I buy quota almost every month because sometimes very little quota is offered for sale , so I like every other farmer , have very little to buy. Last year I might have increased my farms quota holdings by 5 kg. Not a big increase in production , but a fair hefty price tag just the same. Growth for me is constant at this time, with my eldest son home on the farm with me. Probably have really muddy the water here now for most folks reading this. But let me say this, while I have a large over head investment in land and quota, we do get to make a desent return on investment. Your profit margin wi be dictated by how well you manage your cows/farm. Supply management is NO garrenttee of success . Farmers can still screw up and go broke! I know probably more than 100 dairy farmers , don't know any that have imagrant workers milking thier cows, most are all in-family workers. Some have hired help, but just locals . Very different from what I understand of the U.S. . Bruce

Replies:

• Re: Question for Bruce on milk marketing??? centash 15:23:53 12/02/15 (1)
  • Re: Question for Bruce on milk marketing??? Bruce from Can. 20:48:02 12/02/15 (0)
• Re: Question for Bruce on milk marketing??? JD John 14:37:40 12/02/15 (0)

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