California Q4 milk production costs lower
California 2013 fourth quarter (Q4) statewide weighted average total milk production costs were down $1.18/cwt. (-6.4%) compared to the same quarter in 2012, according to the Dairy Marketing Branch of the California Department of Food & Agriculture. Including an allowance for return on management and investment, total costs were down $1.07/cwt. (-5.3%).
Most of the declining costs can be attributed to feed. Total feed costs averaged $11.25/cwt. in Q4 2013, down 8.1% from a year earlier. Feed costs represented 64.8% of total costs.
Compared to a year earlier, Q4 2013 average hired labor costs were up 1¢/cwt., to $1.61; and replacement costs were down 18¢/cwt., to $1.07. Total operating costs were $2.90/cwt., down 1% from a year earlier.
On a per-cow basis, total costs per month averaged $322.83, down $13 from Q4 2012 and down 48¢ from Q3 2013.
Looking at regional differences, the North Coast remains the most expensive region to produce milk, with total feed costs running 49% higher than the statewide average. North Valley average feed costs for the quarter were the lowest, at $11.04/cwt.
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Farm Bill dairy program webinar is March 26
Research from a dairy economist with Ohio State University’s College of Food, Agricultural, and Environmental Sciences will be featured in
A webinar designed to offer dairy producers training on how the new dairy title in the 2014 Farm Bill will impact their agricultural businesses will be held March 26, 8-9 a.m.
The webinar, “Introduction and Strategic Implementation of the Dairy Producer Margin Protection Program,” will be presented by John Newton, an agricultural economist at the University of Illinois at Urbana-Champaign (UIUC).
The webinar will introduce provisions of the new dairy margin protection program, and then will demonstrate that by adjusting margin program choices each year, dairy producers may maximize the benefits of coverage and protect against severe downturns in milk prices, rising livestock feed prices or a combination of both, organizers said.
Registration for the event is free, however, pre-registration is required. For more information or to register, go to https://attendee.gotowebinar.com/register/4274606896111336449.
Dairy replacement sales results from Turlock, Calif., on March 21:
#1 Hol Springers: $1800-$2275
#2 Hol Springers: $1400-$1775
# 1 Jer Springers: $1500-$1925