Guest guest Posted July 12, 2010 Report Share Posted July 12, 2010 I forgot to add that if I sold raw milk in my area, it will be based on what the market can bear, not my cost of production etc. I am competing against the Amish, Mennonite, and people have two or three cows. Their overhead is lower than mine. The market will not bear more than $6.00 a gallon. I need to charge around $10.00. The other way to combat that is to sell more raw milk which will require to go to more urbanized areas - refrigerated truck, bottling plant, bottle washer. I will need to charge around $12.00 to make it. This is compounded by the fact where I live there is a lot of snow and I may not make it down to the city to sell my milk which could cause my contracts to be canceled.Plus whose overhead should we use? The Amish, the Mennonite, the family farm with the tie stall barn, the family farm that took a lot of debt to upgrade to a free stall barn, organic raw milk producers (higher costs especially feed which includes keeping the pastures certifed organic), non-organic raw milk producers???? Plus there is additional testing, regulations, etc. for raw milk producers. More regulations and certifications for organic raw milk producers.As an established farm I can make it on $10.00 to $12.00 a gallon. The market won't bear it. I don't know of any farm in my area that deals in 100 percent raw milk sales either. Farmers put aside cows that are used for raw milk only. This is my area that I am writing about.rom: Joanne To: RawDairy Sent: Mon, July 12, 2010 9:58:06 AMSubject: Re: Self-intro of Leah - Humboldt County, CA I've always thought that price was dictated by cost of production + profit margin. You figure out how much it costs to produce it and then add a profit margin you feel comfortable with that allows you a good living and provides an affordable product to those who need it. Or you just take advantage of demand by charging as much as you can get away with. There's always some rich fool willing to part with his money for overpriced commodities. Quote Link to comment Share on other sites More sharing options...
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