|
|
Article: Low Costs Drive Production to Large Dairy Farms
- Article from:
- Amber Waves
- Article date:
- September 1, 2007
- Author:
CopyrightCopyright Superintendent of Documents Sep 2007. Provided by ProQuest LLC. (Hide copyright information)
|
* Dairy production is shitting to larger farms; small dairy farms are exiting, and more expect to leave in the next decade.
* Average production costs per hundredweight of milk produced fall sharply with herd size. Large dairy farms earn substantial profits, while most smaller operations experience economic losses.
* Given the cost advantages, the shift of dairy production to large farms contributes to rising industry productivity and lower inflation-adjusted dairy prices.
Dairy farming is undergoing striking changes. In the 1970s, a large dairy farm had a herd of 100 milk cows. Typically, the family operating the farm provided most of the labor and grew most of the herd's feed on the farm. ...