|Move 'em on, Head 'em up...Rawhide|
Way back in January (was it really so long ago?) I talked about this and planned to share more on the real costs of producing real milk. But as usual we got so busy with the farm we didn't take enough time to evaluate how the farm was doing.
But now we have. These results will hopefully help you who buy from us, understand how we come up with our price for raw milk from Certified Organic 100% grass fed cows as well as those of you who milk a few cows and sell the results as we do.
It's extremely difficult to find any other sources to help with these calcualtions since big universities are convinced, or at least want to convince US, that raw milk is unsafe and therefore they cannot promote raw milk sales. In addition, you know how some farmers are about sharing finances, harder than castrating a year old boar I would say.
So here goes. In a simplified form. For those of you who care.
Total raw Milk sales in 2012 were $25446. This included the value of what our own family consumed
Feed Costs for our Dairy of 12-15 cows totaled $11,740. That was a big hunk out of the income wasn't it? We included hay, minerals, salts and pasture rent.
Other direct costs totaled $ 14535 and included items such as housing, electricity, fencing, feeders, labor (not ours, just hired labor from time to time) milk tests, health items, and breeding costs (semen ain't FREE you know)
Indirect costs totaled $13,114 and included everything else like auto fuel, diesel, equipment repair, insurance, propane, phones, internet, education, marketing, memberships, pest control team (dogs and cats) chore clothes etc etc... All of these items were divided between our house, our dairy, our beef business and pork business.
So the final figures look like this
raw Milk Income $25446
Raw Milk Expenses $27649
Bottom line - $2203
Hmmmm? The writing seems to be on the wall doesn't it? Keep in mind...it is the raw milk that brings folks to the farm for our other products, calves produced and added to our beef herd are not accounted for (yet). These figures are for 2012, This year 2013 is looking better since we did increase our prices from $5 a gallon to $6 a gallon and managed to grow more of our own hay. Of course we had expenses related to our struggle with IDPH...oh well, it's always something isn't it Gilda?
Next week I'll show you how the increase in our milk sales volumes and price helped our bottom line. At least that is what I HOPE to be able to show you.