Large dairies expand despite low prices

The number of large dairy farms, those with 1 000 cows or more, is increasing rapidly in the US.  This is despite the fact that farmers across the country are feeling the pinch of tight milk prices. Some are coping by getting bigger.

 

According to a report released by Rabobank recently, the number of large dairy farms, those with 1 000 cows or more, has grown and continues to increase. This is due to what some analysts say is the fact that many large farms use risk management strategies to smooth out the volatility of the milk business. Brian Doherty, a strategist with Stewart Peterson, says big producers have both the time, and the resources and energy to really understand the marketing aspect of the dairy business.

 

Doherty says some large farms have even been able to pay down debts and build working capital despite the global glut of milk. However, small and mid-size farms are feeling the squeeze. To read more, click HERE.

Published on Mon, 4th Apr 2016 - 13:27

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