Feed costs are squeezing margins on many dairy farms.
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Feed costs putting the squeeze on dairy margins

Feed costs are squeezing margins on many dairy farms.

Wayne Schoper with South Central College in Mankato, Minnesota says cost of production is a wild card.

“Feed costs per hundredweight were $9.60, so to produce a hundredweight of milk you spend $9.60 on feed. And that includes purchased feed, that includes corn silage or whatever you’re feeding. Hay, haylage, a lot of guys like to feed high-moisture corn.”

He tells Brownfield those costs will likely hover between $13 and $14 per hundredweight next year.

“Now we haven’t even touched the other costs, the vet bill, utilities. Utilities are going through the roof too. Real estate taxes (and) all that stuff. So really a cost of production to produce a hundredweight of milk we’re going to be right at $19.50 to $20 for 2022-2023 production.”

With premiums, Schoper says milk prices are currently around $22 per hundredweight.

Schoper made these comments during a recent Brownfield affiliate KNUJ Farm Forum program.

Globally, consumers can’t get enough of the quality and taste of American dairy products. Foreign exports of American dairy are twice the volume of the nation’s domestic dairy consumption. Last year, about 18% of U.S. dairy production was exported, and economists forecast that percentage to grow more than 25% in 2023.

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