2008's high feed costs eroded any profit in California

Near record mailbox prices for milk were not enough to prevent many California dairyman from losing money last year. Keep in mind these losses occurred prior to the current downward trend in milk prices.

In recently tabulated financial data by the accounting firm Moore, Stephens, Wurth, Frazer, and Torbet, they reported that dairy farms in Southern California were hit the hardest with feed costs rising $467 over the previous year to reach a total of $2,178 per head. That resulted in a net loss of $333 per head or $1.64 for every 100 pounds of milk (cwt.)

Feed costs ran equally as strong in Kern County at $2,114 per head, up $550 compared to 2007. However, financial losses were not near as bad, reaching $45 per head or 20 cents per cwt.

In the San Joaquin Valley, the heart of California's dairy industry, feed costs were only up $350 compared to the previous year's $1,700. However, the losses were higher than those in Kern County, reaching $152 per head or 65 cents per cwt.

Feed costs were up between $231 and $367 in other states where the accounting firm does business. However, dairies in Arizona, Idaho, New Mexico, and the Texas Panhandle had profits ranging from Arizona's $86 to Idaho's $351 per head.