MILK STRIKE...

OK so it's not in this country... Germany as a matter of fact. I for one am cheering them on. GO German DAIRY farmers GO!!! At at least they will stand together for the common good. Maybe we (US dairy farmers) should take a lesson from them. Along with the lesson about GMO crops.

http://news.yahoo.com/s/afp/20080529/bs_afp/germanyfoodfarmingstrike

And for those of you not familiar with liters as a measurement... it is 33.81 ounces... just a wee bit more than a quart. So when you thinking of it the farmers are asking that much... What $2.54 a gallon at the farm. That's not that bad really.

Here we don't get that... I will try to explain. *BG* OKEY SMOKEY people pay attention. Let us pretend for the moment you are a dairy farmer. You'll be getting paid by the hundred weight. Now is were figures come into play:

100 pounds of milk @ 8.6 pounds per gallon = 11.627 and about 20 more numbers... So we have about 11 and a half gallons per hundred. NEXT......

For every 100 pounds of milk you'll be paid a base price for 3.5% milk.... Milk prices are good now so we'll give you... $18.00 a CWT (hundred weight) gross not net. Your milking Holsteins BTW if you were milking Jerseys as I do you you would have to figure in Butterfat above the 3.5%, protein, and other solids not fat... I'm keepin' it simple for ya... OK.... MORE MATH:

Remember your $18.00 is gross... not your net... we need to subtract hauling (yes your paying to have your milk hauled to the plant), promotion (yes your paying for the got milk? campaign and other promotions), co-op fees, and there is one other fee we pay for... right now I don't remember. OK deductions:
Hauling....$1.20 @cwt
All other fees will total....$0.35 @ cwt
----------------------------------------
Total : $1.55

So we take $18.00 minus 1.55 and get????? $16.45 net per hundred. :)

NOW for find out how much we are getting paid per gallon we will take $16.45 divide it by 11.628 and come up with.....$1.4148 and a bunch more numbers. Per liter you would be getting.... $0.3477 and a bunch more numbers.

You have to remember also this is with milk prices good... Think of what you would be making if your milk was at $12.00 base minus your $1.55?

Also you'll have to remember across the country hauling is different, the federal orders are different. There are a lot of variables. But still remember this... dairy farmers don't control their prices. It boils down to the processors and how they manipulate the markets. So the next time you buy that gallon of milk for $4.00 including tax if you live in a state that has food tax... only $1.41 goes to the farmer who has paid to get it there and to promote it.

NOTE: these figures do not take into consideration organic milk... normally organic dairy farmers get $7.00 more per hundred. I think... if someone knows let me know.

OK CLASS IS OVER.... Dismissed...