PREDICTING THE MILK MARKET OF THE FUTURE

 

CONCEPTIONS   Dairy Route newsletter                           Winter 2019-20

Sonny Perdue (and most of those with whom he is talking currently) just have it all wrong.     Consumers do not care how BIG your dairy herd is: consumers only care how GOOD your milk is.    The era of government price and acreage controls that drove all agriculture in a “pooled” commodity direction is all but over, and the recent Dean Foods bankruptcy announcement is only one symptom of what will emerge as the big picture.

Of course you want economy of scale in your operation, where you can create it, but you also want to be a “least cost” producer (the way to stay healthy in any commodity production system)- while you also want to be a “premium product” producer (which means, look to the future, not the past, in production goals).

Consumers are rejecting our lowest nutrient density dairy products in favor of those that offer more of what health-conscious Americans are seeking.   Your genetic selection and mating program can aid in generating you premiums.