economics

New Views on Dairy Farm Opportunities and Revenue

Meet Claudia, The High-Tech Cow
Photo and story via NPR Planet Money.
The dairy industry is different. The reality is that set milk and feed prices are a thing of the past and many dairy operations need to approach revenue with a new look. Fulper dairy farms, in upstate New Jersey, is tackling what were perceived negatives and turning them into positives with revenue generation potential.

One of their negatives turned positive? Land. The land prices in their region is expensive because it is so close to New York City (about 90 miles). But that negative turns out to be a revenue generating positive. New Yorkers want farm fresh food and being close means dairy products like cheese have more value in the city.

How Does Veal + Social Media Work?

Veal via Social Media
Audio via DairyCast.com
Presenting an update on the recently launched social media marketing campaign for veal, George Quackenbush, Director of Promotions for the Michigan Beef Industry Commission, shares the vision and scope of the fast moving initiative.

International Ag Financial Unrest?

International Financial
Audio via DairyCast.com

Paul DeBriyn, President and CEO of AgStar Financial, says strong balance sheets and a good business plan open lender doors.

DairyCast 0443 - Will International Financial Unrest Affect Your Financing Abilities?

DairyCast 0443 Show Notes:
  • Strong balance sheets and a good business plan open lender doors, according to Paul DeBriyn, President and CEO of AgStar Financial.

Dairies: Cost of Production More Important Than Milk Prices

Profiting from efficient milk production According to the DairyCo (UK) Milkbench+ report, the relationship between cost of production and profit is much stronger than many dairies realize. The report states that cost of production is the most significant factor in determining profit.
Milkbench+ analyst Karolina Klaskova says: “Through robust data and statistical analysis we see that the relationship between cost of production and margin is strong.” Ms Klaskova acknowledges that the findings are challenging. “The report raises many issues, including just how difficult it can be to make a profit from milk production,” she says.

Nestlé Strategy To Access The China Dairy Market

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How does a foreign company gain access to such a large food market like China? Build infrastructure and train people in China to create and build supply chains. Nestlé SA is doing just that with the Chinese dairy market by spending millions of dollars to teach farmers how to care for their cows.

Nestlé will guarantee bank loans for [Chinese] farmers to buy more cattle. The company also plans to set up "cow bases," at which small-scale farmers will pay to have their cattle professionally managed.

This strategy will help Nestlé with its supply needed to create its branded dairy products like Carnation, Coffeemate, and Nido for children.

DairyCast 0440 - Supplement Your Crop Insurance Program With Weather Coverage From The Climate Corporation

DairyCast 0440 Show Notes:

What Are The Economics into 2012?

The Economy, Silly!
Audio via DairyCast.com


Bob Young, American Farm Bureau's chief economist, is seeing food costs going up through their consumer surveys.
Our surveys' would suggest those food prices are up, and up significantly.
However, there are enough of uncertainties in the market places that suggest that food prices will only be a factor but not the driver.

Other activity in agriculture suggests that the sector as a whole is doing well. There still are issues with corn and bean prices remaining high, with impacts to cattle prices. But over all 2012 looks pretty good.

DairyCast 0439 - It's The Economy, Silly! What Keeps American Farm Bureau Federation Economist Up At Night?

DairyCast 0439 Show Notes:
  • Food prices are higher and the consumer (Black Friday sales notwithstanding) are hunkering down.  What does it mean for U.S. agriculture and agricultural policy?  Let's ask American Farm Bureau Federation chief economist Bob Young.
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