Allen Riddle wrote:
>>>> If cheese prices have been worth $1.80 for the past several weeks they
are worth it today.How can the prices be droping so fast if they are based
on supply and demand.
====
A better way to look at it is that the prices are based on perceived supply
and demand in the short term. That is why you can have such excessive highs
and excessive lows. The buyers and sellers can overreact if they are right
at the edge of buying and selling. If you look at the smoothed numbers over
the long term, they balance out quite well.
>>>> Can't we do anything besides cut expenses all the time.
======
Generally, in a very old and mature industry, you need some kind of
advantage over your competitors or for something to happen to negatively
affect supply which increases demand. The main solution for many dairy
farmers is to leave the industry and go into something else. What is
happening is that the remaining farmers are increasing herd size in order to
stay competitive.
>>>> I can survive on $13 class 3 milk, I really want to make some serious
money for a change.
====
Some areas of the U.S. can survive on $10 milk. We all want serious money,
but we often have to change what we are doing in order to find something in
short supply or at least short enough in supply that we can increase our
income.
For many of us, myself included, it has required changing careers several
times over ones lifetime. Many skills and careers that were once viable, are
now no longer needed. Sometimes you can adapt those skills to other related
careers and sometimes you can not. Sometimes, like many of us, it requires
constant training, constant updating, constant change to adapt to those
changing conditions.
Sincerely,
Rick Williams
Misty Ridge Farm
Pastured Beef and Farm Produce
Viroqua, WI
www.mistyridgefarm.com
