Enduring Low Milk Prices

 

As we look forward into 2016 it seems we need to recall the lessons that we learned in 2012 when milk prices fell again to all-time lows. The difference at this point is that we are also not dealing with a drought and short feed supplies causing high feed input prices. With tighter milk to input price ratios producers need to look at ways to maximize income and meet expenses. There are a few general things to keep in mind to minimize long term impacts and overall damage to the business through the lower milk price cycles.

 

 

First, is to make sure the herd is stocked with profitable cows. Do you have cows below the herd average for their total milk production or do not produce enough to meet break-even expenses? Are there cows that are not producing quality milk and may need to be culled because of high somatic cell counts, high bacteria counts, or low milk fat and protein levels or poor reproductive performance? Is there opportunity to replace these cows, through voluntary culling from the herd, with cows that have the genetic potential to respond and out produce herd mates? Continue to work with your genetic/semen supplier to identify cows that are profitable and producing the high quality milk that is paying you a premium.