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Some dairy stuff
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JR B
Posted 6/10/2022 08:27 (#9698986)
Subject: Some dairy stuff


Linneus Mo.
https://www.dairyherd.com/news/business/railroad-issues-make-califor...

In the meantime, Lopes tries to stay optimistic, but worries that the weeks to come won’t deliver any better outcome, with corn amounts continued being limited to farmers.

“I wish people knew just how bad this situation is,” she says. “This simply cannot continue.”

This is very interesting. As the corn doesn't get to them how does California keep up with the demand for milk? If we see milk production drop by a couple of pounds per cow how does that affect the Supply and demand balance sheet?

Also losing production will have a negative impact on profitability.

Another dairy article I came across.

https://hoards.com/article-32064-does-dropping-barrel-cheese-make-se...

I think dropping the barrel price is a bad idea. It limits price discovery. The article clearly states how the market makes adjustments to price to address concerns about the pricing/demand differences of barrels and blocks so it's not an economics issue for the processor it's just a way to take away another price discovery tool. Our Beef brothers and sisters are already fighting in a world of limited price discovery. Why would we want to join their ranks?

Well, hopefully, I can finish planting corn this weekend. 8 inches of rain in the last 16 days has put me behind.
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