For two years, milk sold for record prices, and then the bottom dropped out along with the economy. But feed and energy prices haven’t dropped as fast. To survive, Georgia dairymen like Everett Williams of Madison, Ga., have had to cut their cost of production.

Recycling manure and bedding sand, using good feed and paying “a lot of attention to detail,” Williams said, has kept his dairy afloat.

“We just got big enough to pay bills,” says Williams’ son Justin, who quit his job as a loan officer in Atlanta a few years ago to work on the farm.

Before the economic bust, farmers across the country expanded, said Tommie Shepherd, an agribusiness economist with the University of Georgia Center for Agribusiness and Economic Development. Unfortunately, “a cow’s not like a water faucet. You don’t just turn the spigot off,” he said.

In April 2008, milk in Georgia averaged $3.99 a gallon. This year, it’s $3.19 a gallon. Good news for consumers, but not for milk producers. They are losing between $2 and $3 per 100 pounds of milk they sell. 

For Dave Clark of Godfrey Dairy in Morgan County, it’s important that Georgia dairies stay open. “If we can make milk in Georgia, we don’t have to burn fuel to bring it from Wisconsin,” he says.

To help them stay open, UGA Cooperative Extension specialist Bobby Smith works with dairies in Morgan, Putnam and Greene counties, the hub of Georgia’s milk industry, where 70 dairies operate. He helps solve their problems. Recently, that meant helping Clark conduct an energy audit.

“His irrigation was all on diesel,” Smith says. “He converted it all to electric, and now he operates at 20 percent what it cost to operate off diesel.”

Clark says that saving money and staying open as a dairy helps the local economy. Because of the dairies, Madison has been able to maintain infrastructure.

“At one time, we had over 100 dairies in Morgan County,” Clark said. “Now we have 28.”

To cut cost at Williams Dairy, they use manure to fertilize their land “Recycling nutrients just helps you grow crops,” Everett Williams says. They irrigate the farm with wastewater that has been filtered and cleaned.

 “We’re extremely efficient as far as using waste water and reusing nutrients,” says Justin Williams.

To help Georgia dairy farmers, Cooperative Extension specialists have used a U.S. Department of Agriculture conservation innovation grant. It helps them lead farmers through a process that includes on-farm environmental assessments and potential environmental risk management plans.
The hope is dairymen will save money while being good environmental stewards, explains Adam Speir, a UGA Extension agriculture pollution prevention specialist.

“Being environmentally sound and financially sound go hand-in-hand,” he says. “By going through the environmental management system process, we hope dairy farmers can save money by also implementing best management practices on their farm.”

Source: University of Georgia