The prior post covered the impact of current component levels on producer revenue. The impact is very powerful. This post and the next three posts will cover opportunities to increase revenue. The four posts will cover the following elements.
Part I – Making Money – Butterfat and Protein Components
Part II – Making Money – Milk per Cow
Part III – Making Money – Somatic Cell Counts
Part IV – Making Money – The Mix of Classes of Milk and the Statistical Uniform Prices
This post will compare component levels in the different Federal Orders and show which Orders have the highest component levels and which are growing component levels fastest. The data is based on 12-month moving averages to eliminate volatility. Because Class II, III, IV can de-pool, Federal Order data is skewed by significant de-pooling. Typically, the highest paid Class has a lot of de-pooling and is not included in the Federal Order numbers. In the last 12 months, de-pooling of Class IV milk has been significant.
October 3, 2024
John Guess
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