At the sixth month cash flow check, milk production trends are mirroring January to June financial data reported by Frazer LLP.
Whether on a per head or per hundredweight basis, cash flows have been negative for dairy farms in California's San Joaquin Valley and Kern County. The same held true for New Mexico and the Pacific Northwest, noted Frazer LLP, a western U.S. accounting firm. Then it should come as no surprise that those were the same Western states that willing pulled back on milk flow in September – California, New Mexico, Oregon and Washington.
The negative cash flow statements from January to June were as follows:
• San Joaquin Valley, California: 96-cent loss per hundredweight or $127 per head
• Kern County, California: 32-cent loss per hundredweight or $38 per head
• New Mexico: $2.37 loss per hundredweight or $216 per head
• Washington: $1.14 loss per hundredweight or $128 per head
In other client regions, returns were slightly positive for Arizona, Idaho, the Texas Panhandle and Southern California. To review the entire data set, click here to download the PDF.
(c) Hoard's Dairyman Intel 2015
November 9, 2015