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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
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AN TO
$38.00
$28.00
$2.00
$68.00