How does CWT determine when to have a herd retirement program?
CWT monitors a number of economic indicators, or benchmarks, in determining when to conduct a Herd Retirement program. CWT’s goal is to achieve maximum positive impact on producers’ milk price. These benchmarks include but are not limited to: • The All-Milk price • The cost of milk production • The milk-feed price ratio • Dairy cow numbers • Milk production • Dairy cow culling The significant rise in cash costs associated with milk production during the past two years – most notably in feed and fuel costs – has reaffirmed the wisdom of monitoring multiple economic indicators. CWT’s focus cannot be just on the price of milk – it must also consider the operating margin of milk production. The timing of CWT’s Herd Retirements allows market forces to begin to work more quickly to prevent the severe imbalance of supply and demand that damages the operating margins of dairy farmers.
CWT monitors a number of economic indicators, or benchmarks, in determining when to conduct a Herd Retirement program. CWT’s goal is to achieve maximum positive impact on producers’ milk price. These benchmarks include but are not limited to: • The All-Milk price • The cost of milk production • The milk-feed price ratio • Dairy cow numbers • Milk production • Dairy cow culling The significant variation in cash costs of milk production, cull and replacement prices reaffirm the wisdom of monitoring multiple economic indicators. CWT’s focus cannot be just on the price of milk — it must also consider the operating margin of milk production. The timing of CWT’s Herd Retirements allows market forces to begin to work more quickly to prevent the severe imbalance of supply and demand that damages the operating margins of dairy farmers.
