Alberta Agriculture & Forestry (AF) has released The Economics of Milk Production, 2016.
In a press release, Research Analyst Pauline Van Biert says it’s an annual report outlining the cost of producing milk in the province.
“This latest release is for 2016, based on the collective results of dairy farmers participating on the provincial dairy cost study,” said Van Biert. “Forty-five Alberta dairy farmers, or almost 10 percent, provided information on their costs of producing milk for the 2016 study.”
She adds that the study contained lots of interesting numbers, including that last year, the total cost of producing a hectolitre of milk was $78.81.
“When we think in terms of costs per cow,” Van Biert said in the release. “This works out to be just a little more than $7,300 per cow.”
Other results showed the average herd size, which was at 161 cows. As well, it recorded a 27 percent cull rate, with farmers raising their own replacements.
As well, Van Biert says there was a 10 percent increase in milk production, while there wasn’t even a one percent increase in costs.
She adds that the study showed an increased investment in dairy barns and milk facilities among participants.
But Van Biert says the highlight is the continued strong demand for milk.
“This is due to renewed and continued consumer interest in dairy products, especially butter,” she said. “It’s also due to the advancement in technology by processors in making cheese.”
– Posted by BET
