WA P OSftS!y£f * BOVINE SO^O^^^^ONFs7 As we all know, this year’s decline in milk prices has created some challenges. Dairy producers are looking for ways to lower their expenses or increase increase cash flo One of the ways to increase cash flow is to remain on POSILAC or like to share how we are discussing POSILAC use with producers who: 1. Periodically wrestle with the decision to maintain consistent lol^m|j^ri< 2. Are looking for ways to increase their cash flow immediately with additional milk production, While infrequent, the first group of current users of POSILAC may question if they can cut their use oi POSILAC to improve cash flow. We simply advise these producers not to cut expenses Uiat willreduc production and, in turn, reduce cash flow. Data from commercial trials show 98% of producers will continue to generate cash flow and a profitable response,for any milk price greater than $6.80 per hundredweight as illustrated in the table below. Cash Flow from using POSILAC ? (Economics at a 10 pound milk production response) Milk response 140 pounds 1000 pounds Milk income $14.00 $lOO.OO POSILAC cost Feed costs: (4# feed/l 0# milk) $0.07/# dry matter Labor costs per injection $0.28/14-day dose Total Expenses Cash Flow Cost of production of POSILAC + Feed+ $3B + $2B + $2 - $6B/1000 pounds additional milk Labor $6.80/100 pounds of milk (cwt) Both the first and second groups of dairy producers can successfully add almost $lOOO of cash flo per month for every 100 supplemented cows to their business by producing additional milk at a c $6.80/cwt. Milk would have to drop below $7.00 mail box price before use of POSILAC would no Ion; cash flow. To generate increase cash flow on your dairy, we encourage you to cut expenses that don’t lower production. Respectfully, Dr. Jeff Brose (717) 709-0818 Technical Services Specialist Monsanto Dairy Business POSILAC is a registered trademark of Monsanto Technology LLC. 10 pounds $lO/cwt. $5.20/14 day dose Income expenses $5.20 $3.92 $0.28 $9.40 Dan Card (717) 653-0614 Area Marketing Manager Monsanto Dairy Business # w '- AN TO $38.00 $28.00 $2.00 $68.00
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