Posted by Bruce from Can. on November 13, 2019 at 07:32:38 from (74.12.72.61):
In Reply to: Root of the Dairy Problem posted by Traditional Farmer on November 13, 2019 at 05:02:10:
It is a well documented fact that fluid milk consumption has been in decline ever since the end of the Second World War. Even though the overall market has increased by average of 2% per year. As a long time dairy farmer, my opinion is that all of the focus by feed companies, seed companies, breed associations and Universities, has always been about higher production. Not directly about increased profitability. The mind set has always been the more you can produce, the cheaper you will be able to produce. Economy of scale. And that would in fact work, provided the wholesale or farm gate price was able to go up at the same pace as inflation. As it stands, all input cost continue to increase with inflation, while farm gate price are still stuck in the 20th century. And in some cases , stuck were they were 40 years ago. Simply producing more of any product beyond what the market can consume is going to depress the value of said products. All of the marvellous advancements made in genetic development in both plants and animals have only helped farmers to produce more , while taking the same price. But we have all been told that the secret to success is to become more efficient. Truth is the real secret is to become more profitable. Traditional Farmer talks about this regularly, but few notice. If growing corn isn’t making any profit, then stop growing corn. If milking cows isn’t showing a profit using all the excepted methods, and you still want to milk cows, perhaps you need to consider a different way to feed the cows that will allow a profit, or sell into a different market. If you continue to do the same as everyone else , and everyone else is going broke , don’t be shocked when you do too. Hard to believe, but sometimes less will turn out to be more. Too many non farm business are capturing too much of the value of farm products.
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