Continuing a discussion we have been having on the thread "how common is this?" I wanted to highlight some of the "small scale" "niche" operations I've read of in Stockman Grassfarmer that just blow my mind with their potential. I hope you find them interesting. These are all US operations and figures are in US $.
Today a typical commodity dairy operation of 30 cows without supply management is a hopeless proposition. Gross revenue from milk might total $57,000 (< $2000 per cow) before all the costs of feeding, housing and milking a herd year round plus machinery costs. The bottom line probably looks as exciting as being a small commodity beef producer.
Instead we have an example of a 30 cow organic herd producing milk seasonally off grass, turning 50% of the milk into high price specialty cheese - grossing $60,000 a year, 25% milk sold to premium raw milk customers and 25% (spring excess production) sold to an organic milk wholesaler. All told this operation grosses $150,000 from it's milk sales off the 30 cows ($5000 per cow). Plus they don't have the costs of winter production, machinery or fertiliser of the conventional operation. Best of all the family reckon they work hard for 6-8 months of the year and holiday or relax the rest of the time.
Another operation sold all their seasonal grass produced milk as raw unprocessed to eager customers achieving a similar $5000 per cow return and in addition sold grass fattened steers for $5/lb ($3000 - 3700 per head) These guys show how to return huge gross returns off small areas of land - 100 acres would carry the 30 cows plus they both had sideline pasture pork, poultry etc operations on top.
The most memorable one was a sheep operation run by Americans in Mexico - 200 acres of irrigated alfalfa supporting a flock of over 4000 breeding ewes. They direct market 9000 head of lambs and cull ewes to gross over $1 million. I guess direct marketing in Mexico is a lot different to here as they are probably more used to buying from producers rather than big stores.
Their main inputs were cheap labour and sunshine with only an old tractor a pickup and a bicycle for machinery! ( I wonder how this would work in southern Ontario or lower mainland BC - close to a big ethnic customer base?)
Why do most producers in North America beat their heads against the wall wondering why they can't make a living with $2 bu barley on thousands of acres with millions $ tied up in inputs? or cow calf producers run multi hundred cow herds hoping to get $60 a head profit selling feeder calves - it seems clear to me we cannot win this commodity game. The price of land is a thing constantly bemoaned on this site - maybe it's time to make better use of the land we have.
Use the sun, the water and grass which are all free and cut out all the "input" parasites feeding off the carcase of modern agriculture.
Today a typical commodity dairy operation of 30 cows without supply management is a hopeless proposition. Gross revenue from milk might total $57,000 (< $2000 per cow) before all the costs of feeding, housing and milking a herd year round plus machinery costs. The bottom line probably looks as exciting as being a small commodity beef producer.
Instead we have an example of a 30 cow organic herd producing milk seasonally off grass, turning 50% of the milk into high price specialty cheese - grossing $60,000 a year, 25% milk sold to premium raw milk customers and 25% (spring excess production) sold to an organic milk wholesaler. All told this operation grosses $150,000 from it's milk sales off the 30 cows ($5000 per cow). Plus they don't have the costs of winter production, machinery or fertiliser of the conventional operation. Best of all the family reckon they work hard for 6-8 months of the year and holiday or relax the rest of the time.
Another operation sold all their seasonal grass produced milk as raw unprocessed to eager customers achieving a similar $5000 per cow return and in addition sold grass fattened steers for $5/lb ($3000 - 3700 per head) These guys show how to return huge gross returns off small areas of land - 100 acres would carry the 30 cows plus they both had sideline pasture pork, poultry etc operations on top.
The most memorable one was a sheep operation run by Americans in Mexico - 200 acres of irrigated alfalfa supporting a flock of over 4000 breeding ewes. They direct market 9000 head of lambs and cull ewes to gross over $1 million. I guess direct marketing in Mexico is a lot different to here as they are probably more used to buying from producers rather than big stores.
Their main inputs were cheap labour and sunshine with only an old tractor a pickup and a bicycle for machinery! ( I wonder how this would work in southern Ontario or lower mainland BC - close to a big ethnic customer base?)
Why do most producers in North America beat their heads against the wall wondering why they can't make a living with $2 bu barley on thousands of acres with millions $ tied up in inputs? or cow calf producers run multi hundred cow herds hoping to get $60 a head profit selling feeder calves - it seems clear to me we cannot win this commodity game. The price of land is a thing constantly bemoaned on this site - maybe it's time to make better use of the land we have.
Use the sun, the water and grass which are all free and cut out all the "input" parasites feeding off the carcase of modern agriculture.
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