Cost of production hits dubious milestone

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Everyone knows the cost of production is going up, up, up.

On Monday, a dubious milestone was set when the U.S. Department of Agriculture pegged the cost of milk produced in October at $20.56 per hundredweight, breaching $20 for the first time ever.

To see an itemized list of expenses for the year to date, click here and go to the monthly national milk cost of production, updated Nov. 26.

“The high cost of production seems likely to continue to trend of heavy cow culling, especially considering the price of milk has been on a downswing and grain prices have seen a recent rally,” says Dave Kurzawski, dairy analyst with FC Stone/Downes-O’Neill in Chicago,

See “Biggest risk to farmers: high input costs, not land.”

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il  |  November, 29, 2012 at 11:18 AM

Lets talk about raw milk instead. It costs less to produce.

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