Does High Production Come With Too High A Price?
MICHELLE KUNJAPPU
Lancaster Farming Staff
LEBANON (Lebanon Co.) At a late-winter
meeting sponsored by the agriculture group of
Fulton and Lebanon Valley Farmers Bank, area
producers gathered for the 24th annual luncheon
seminar.
The Lebanon Valley Expo Center hosted the sem
inar, which drew more than 450 producers and in
dustry representatives.
Jeffrey D. Brose, DVM, technical service special
ist, Monsanto Dairy Business, discussed “Banking
on Higher Milk Production” to start the seminar.
“Is high milk production really more profitable?”
asked Brose. “What is the cost of high production?
It has a cost in stress.”
Even with these considerations, Brose said,
higher production does help the farm’s bottom line.
Brose asked dairy producers to think about their
profit margin. “Is the milk that you sell equal? Does
it all have the same profit margin?
“As you improve your production level, the profit
margin gets greater for that next pound of milk. As
we do something to improve your milk production,
expenses are greater but hopefully there is more
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profit margin,” he said.
Higher production allows a producer to spread
fixed costs getting more milk from the same
amount of cows by improving cow comfort or giving
more feed
From left stands Ken Bailey, associate
professor of dairy markets and policy, Penn
State; Lou Moore, professor of ag econom
ics, Penn State; Mike Firestine, senior vice
president ag loan officer, Fulton Bank; and
Jeffrey Brose, Monsanto Dairy Business.
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