Dairies in the Panhandle

506 Views | 7 Replies | Last: 19 yr ago by CanyonAg77
Obejuan03
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AG
I toured a dairy on Highway 70, some miles outside of the tiny community of Edmonson a couple of days ago and came away quite impressed.

The owner, a recent immigrant from Holland, sunk 13 million into the facility. I was most impressed by the innovations in milking. The cattle are loaded upon a moving carousel and different employees are stationed around to put the suction cups on the teats. Some are there to put iodine on the equipment, and others check to make sure they stay on and then take them off. I was told a good producing cow will give up to 60 gallons in one day, as all are milked twice a day. Each cow is tracked via computer of how much it is producing, once it is below the threshold, it becomes hamburger meat.

There was an incredible amount of cows, and the infant mortality rate was very low, I was told. All breeding is done via artificial insemination, and all male calves born are sold out to feedlots or whoever else wants them.

I have seen the dairies springing up all across the area, and I wonder if they are legitimately going to improve the economy. They buy a ton of grain from local farmers, and utilize truckers to ship out to milk and cheese producers around the state. My only concern is the level of debt assumed by these guys to get going. I also wonder how much the government is still involved in the dairy industry such as price supports, and what effect that has at the lowest level of production. Lastly, I wonder how much of the employees are legal. Maybe someone with family or friends in the business can tell me a little more about the prospects and day to day operations of the dairies. I am very interested.
CanyonAg77
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AG
Palla Dairy, based out of Clovis, New Mexico, is run by an Aggie family. They are good people and also run the operation at Canyon.

Tons of dairies are bailing out of east Texas, California, and other places where there are higher population and enviromental pressures. The Panhandle already has the cattle-raising infrastructure in place, so it seems a good match.

All I can say for sure is that corn silage was around $18 a ton a few years ago, and was about $27 last year. Grain Sorghum was running about $3.25/cwt, now it is around $6.35...but a 2006 drought is a huge part of that. Wheat has been as low as $3.25, and is over $5.00

If the water holds out, it may be good times again in the Panhandle. Extra demand from ethanol plants and dairies is a big part of that.
HHAG
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...if the water holds out...

Big words, DB.
powerbiscuit
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from what I hear, the people coming from California are coming in with pockets full of cash....

they are selling out their land there for big bucks
Obejuan03
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AG
Will all of the new money and investment be good for the economy in the long haul, or is this a short term fad as I have heard area farmers and ranchers say it is?
powerbiscuit
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from someone who no longer lives in the area but still has ties, I don't see how it can do anything but help....

most of the little towns that I am familiar with have been dying for years....businesses and people have been moving out

this influx of people and cash has to help....the need for silage, grain, hay, vet services, etc will only help the existing farms and businesses
dead zip 01
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the corn price fluctuation is due largely in part to the rapidly expanding ethanol production
51Merc-98Ag
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AG
^
|

I would not attribute price flucuation to ethanol production - that is more of a trend. Fluctuations are due to things like drought in Australia.....

Then again I must admit that I am not a marketing expert - hopefully nobody will bash me too hard.....
CanyonAg77
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AG
Its a combination. The feedlots have always been there, the ethanol and dairy plants are coming into play, world meat and grain use is increasing, and we had a drought in this area the last few years, lowering dryland sorghum yields.

I think sorghum is at about $6.70 cwt right now...but no one has any.
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