SodBuster87
Member
[urlhttps://brainerd.craigslist.org/grd/d/praire-farms-milk-base-for/6532764309.html[/url] " Milk base " for sale
- Thread starter SodBuster87
- Start date
I can't sort out that web link, or the posting has been removed.
Craigslistings tend to go away fast, if a person knows how to take a screen capture and post that picture is a good way to share a craigslisting
for many to see.
Canada has that sort of thing, didn't think USA did at this time unless it was a company specific quota, only so much room at the milk
processing plant?
Paul
Craigslistings tend to go away fast, if a person knows how to take a screen capture and post that picture is a good way to share a craigslisting
for many to see.
Canada has that sort of thing, didn't think USA did at this time unless it was a company specific quota, only so much room at the milk
processing plant?
Paul
Steve A W
Member
- Location
- Northwest Indiana
Bongards used to have a waiting period, because it was such a profitable cheese plant, at times over a year wait time. Our first year, in the early 80s, we got a dividend of $1.70 per cwt, on a Grade B market. Grade A was typically a dollar higher price each month, but paid only a few cents dividend, after many years. Bongards paid out old equity 7-8 years later.
Dairy is such a tough environment right now, too much milk out there. No room at the processors, with Walmart going their own direction, Dean Foods is dropping a bunch of dairies - with no where to go?
Canada shut down a little importing of milk a while ago.
A lot of dairy is becoming vertically integrated, where the processing plant also,owns the large dairy barns and cows, all in house deal.
Pretty tough to sell milk off the farm of late. And prices reflect it.
Paul
Canada shut down a little importing of milk a while ago.
A lot of dairy is becoming vertically integrated, where the processing plant also,owns the large dairy barns and cows, all in house deal.
Pretty tough to sell milk off the farm of late. And prices reflect it.
Paul
Sodbuster87: What they are talking about is where Praire Farms is limiting you to only getting paid full rate on the average pounds (base quota) you produced last year. For the pounds you want to sell above that they only pay a greatly reduced rate. So what the fellow is offering for sale is HIS pounds/quota so you could sell more pounds than you did last year and still get paid the full rate.
So an example would be: Current Grade A April milk price is $14.10 per hundred. So if your quota was 180,000 lbs. per month but you actually shipped 200,000lbs. You would get 180,000/100 x $14.10=$25380 then the overage would be 20,000/100 x $10.00= $2000 rather than $2810.
The $14.10 is the milk piece for April. The last I heard was the over quota milk was bringing $10.
The trouble is demand is flat to down, but guys are increasing their production like there is no limit to what can be marketed. Until now the dairies could absorb the excess production but not now.
So an example would be: Current Grade A April milk price is $14.10 per hundred. So if your quota was 180,000 lbs. per month but you actually shipped 200,000lbs. You would get 180,000/100 x $14.10=$25380 then the overage would be 20,000/100 x $10.00= $2000 rather than $2810.
The $14.10 is the milk piece for April. The last I heard was the over quota milk was bringing $10.
The trouble is demand is flat to down, but guys are increasing their production like there is no limit to what can be marketed. Until now the dairies could absorb the excess production but not now.
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