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interesting discussion here, Iwould like to make a few comments of my
own on this.
I don't beleive for a minute that the large daries are any more
profitable than the smaller ones. they just recognize the economies of
scale that the smaller ones cannot. for example; if you are talking
cows per man it is not any different. most large dairy operations avg.
about 60 lactating cows per 1 man. no diffdernt than the smaller ones.
smaller ones actually do a little better. now take purcashing feed.
with large purchases of feed these guys can get bargins and hauling
reductions that small producers cannot, these can be easiliy in excess
of $30-40 dollars per ton.
I can sight more cases like these but I am not going to here is my
point. I know of several large dairymen, that are so far in hock to the
bank they in there lifetime will barely be able to pay off all the debt
they have incured, and some of these guys can't even write the checks to
pay for anything on these daries without approval from the banker first.
I have never found it so easy to borrow money to buy cows or to add
barns to your place than it is in todays time. the trick is being able
to pay for it all in good times and bad. we as owners and operators are
the only ones that determine how profitable our own places are.
Cows only produce so much milk, high protein and butterfat go anolg way
on the bottom line with me.
Aaron W. Olson
Olson Dairy
White Swan, WA. State
