Cost of Production Estimate for Willamette Valley, Oregon


November 2001

 

Assumes: $2,000 investment per cow in land (50% borrowed)
  $2,000 investment per cow in bldgs & equipment (80% borrowed)
  $1,200 investment in cow (30% borrowed)
  $ 12 gross milk price

Simple Annual Dairy Cash Flow
Sample herd: Willamette Valley, Oregon
100 cows each producing 21,000 pounds 3.7% fat milk

     

PER
COW

PER
CWT

PER
YEAR

INCOME          
Milk Sales
Value of calves & Manure
Cull cows 30%

203.7 cwt

1300 lbs.

$12.00

$ 0.28

$2,444
100
109
$12.00
0.49
0.54
$244,440
10,000
10,920
TOTAL INCOME
$2,654
$13.03
$265,360
EXPENSES          

Feed:

  • Grain
  • Hay
  • Silage
  • Mineral

 

3.5 ton @
2.0 ton @
9.0 ton @

 

$185
$140
$ 36

 

648
280
324
40

 

3.18
1.37
1.59
0.20

 

64,750
28,000
32.400
4,000

TOTAL FEED
$1,292
$6.34
$129,150

Labor (Hired & Family)
Veterinary & medicine
Breeding fees
DHIA (production testing)
Supplies
Bedding
Dairy vehicle costs
Hauling & Marketing
Utilities
Repairs, Taxes, Insurance
Herd Replacement
Depreciation (Bldgs/Equip)
Miscellaneous


14 hours @








30% of


$10.00









$1,170


140
35
30
20
35
25
18

132
30
70
351
150
50


0.69
0.17
0.15
0.10
0.17
0.12
0.09
0.65
0.15
0.34
1.72
0.74
0.25

14,000
3,500
3,000
2,000
3,500
2,500
1,800
13,241
3,000
7,000
35,110
15,000
5,000
EXPENSES W/O DEBT SERVICE
$2,378
$11.67
$237,800
TOTAL DEBT SERVICE          
-Principal and Interest
$ DEBT
RATE
YEARS
   
Bldgs, Improvement, Machinery, Equipment
160,000
8.0%
20
 
16,296
Land
100,000
8.0%
30
 
8,883
Cow Herd
84,000
10.0%
5
 
22,159
Operating Loan Interest
10,000
12.0%
1
 
1,200
TOTAL ANNUAL DEBT SERVICE
485
2.38
48,538
      $3,540  DEBT/COW
TOTAL EXPENSES WITH DEBT SERVICE
$2,863
$14.06
$286,338
RETURN TO CAPITAL & MANAGEMENT  
($210)
($1.03)
($20,978)
   
OREGON STATE UNIVERSITY
EXTENSION SERVICE
Dairy Enterprise Data Sheet
Holstein Replacement Heifer
0 - 3 Months      
  Milk Replacer
Calf Starter grain
Alfalfa Hay
50 lbs
100 lbs. at
30 lbs. at

$290/ton
$140/ton
$34.00
14.50
2.10
   
FEED COSTS
$50.60
  Labor (hired & family)
Veterinary & medicine
Bldgs, Pens, Equipmt
Bedding

9 hours at

$8/hour
$72.00
    NON-FEED COSTS
$91.00
   TOTAL CASH COSTS (0-3 MONTHS)
$141.60
  *Interest
Calf Cost
Death loss

10.0%

10%

 
26.16
120.00
19.08
 
TOTAL COST TO 3 MONTHS
$306.84
4 - 26 Months      
  Grain
Hay
Silage
Pasture
Minerals & salt
1800 lbs at
6000 lbs. at
1.5 ton at
9 mo. at
$220./ton
$90/ton
$30/ton
$10/month
198.00
270.00
45.00
90.00
10.00
   
FEED COSTS
$613.00
  Labor
Breeding fees
Veterinary & medicine
14 hrs. at $8/hour
112.00
20.00
10.00
   
NON-FEED COSTS
$142.00
 
TOTAL CASH COSTS (3-26 MONTHS)
$755.00
  Depreciation (bldg/eqpt)
* Interest
Death loss
Culls for repro. failure
10.0%
2.0%
5.0%
 
14.00
49.75
12.78
31.96
 
TOTAL COST (3-26 MONTHS)
$863.49
 
TOTAL COST (0-26 MONTHS)
$1,170.33

* Interest is charged as if all money for heifer growing is borrowed. This varies from farm to farm. Interest on borrowed money must be repaid and is a cash expense.

Prepared by Mike Gamroth, Extension Dairy Specialist, Oregon State University, Corvallis, OR 97331 (15-Nov-01)

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