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There is one universal fact that Vaughan told me the fist time we met =
over 15 years ago, is that no matter where you go in the world or what =
the production model is, the price received for the product is always =
within 10 percent of the cost of production.
The only thing that matters is how much better than the average you =
are.
Dave, if you were to get double the milk price you get now, you would =
still be complaining.
Yup,with Dick by his side. Stop all imports and US dairyman will =
increase production and drive the price back down to cost of production =
and the whineing starts all over again.
We probably have the natural resources in this country to produce milk =
for far less than the kiwis. What we do not have in the dairy industry =
in this country are entrepreneurs. Maybe the new production model for =
dairy in this country is 2000 acre dairies in Mississippi or Arkansas =
with production per cow lower than the kiwi system with cows lasting to =
10+ years.
Intersting Brad. Have you been there or how do you come to this? I was =
in Lousiana in January and i see lots of potential. Close to a milk =
deficit region. Cheap irrigation. Supplement feeds right there. Some =
large tracts of land. Just lack of infrastructure. But you get a few =
operators that put in several 5-1000 cow set-ups as the kiwis will have =
done here before long and infrastructure will follow. Just need about =
10,000 cows among say 5 owners. Once they prove the model the rest will =
follow. Just as has happened in west Texas/ east New Mexico.
Bernie
Reeds, Mo.
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