coshoo: You have part of the equation The larger dairies buy the feed in larger lots. The majority of them also use options to protect their milk prices with a price floor. The larger dairies usually ship in tanker loads too. They often can get a premium for doing that too.
The biggest difference is the labor costs. The majority of the dairies we shipped feed to had just about 90% Mexican labor to do the milking/feeding chores. They where not paid poorly either usually $15-20 an hour. When you look at the labor per hundred weight of milk there is not comparison to a smaller family dairy. The family living cost that would come out of the smaller dairies makes their cost per hundred weight be much higher. I do not support this nor encourage it, I am just stating the facts as I see them.
The open border policy hits the rural areas harder than many think it does. The smaller dairy farmer is working against immigrant labor. So he ahs to beat the price or be willing to work/live on that level of income.
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Today's Featured Article - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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