Total Dairy Costs Down in 2015

Dairy Heifers

Through October, the United States Department of Agriculture calculates that total dairy production costs are down about 1.45/cwt compared to 2014.

The primary reason is lower feed costs. Through October, USDA estimates feed costs were running just under $12 per hundredweight of milk produced. In 2014, feed was running about $13.25/cwt. The big difference was in purchased feed costs, with 2015 purchased costs running $5.40/cwt compared to $7.07/cwt last year.

USDA estimates total dairy cost of production is still $23.42/cwt, but that includes a charge of 2.33 for unpaid labor and $3.77/cwt for capital recovery of machinery and equipment. In 2014, USDA estimated the total dairy cost of production at $24.86/cwt.

You can get all the estimated costs here



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