Guest guest Posted September 23, 2006 Report Share Posted September 23, 2006 Haribol Prabhu, Phew! What a question. Here is an indication. There are a few things not included In the UK I have calculated that looking after a cow and buying in all the hay and straw and grain, Repairs and Renewels, Veterinary costs, some miscellaneous costs will be about 350 pounds sterling per year per cow/ox/calf. In addition to this you would have to add any building or land costs. The labour for milking cows is extra. We would pay 6 pounds sterling per hour for milking the cows. You should also add 10% for employers tax to the government making it 6.60 pounds sterling per hour. I expect that one milk person per day would be sufficient for a farm calving three a year and letting the lactations run for 3 years. The number of days to pay for would be 405 per year (7 working days per week plus holiday cover for the year). I also expect that milking up to 9 cows and attending to the herding, cleaning, milk carrying to the kitchens would take about 7 hours per day. For the sake of keeping these calculations simple I have not included any ox work calculations. Some additional things I would base my calculations on: a. Average daily lactation for a 3 year lactating cow would be 25 litres per day per calf. (11 per day first year, 8.5 per day second year, 5.5 per day third year) b. Average life of a cow is fifteen years (Loss at birth, accident and natural mortality) c. Cow eats 90 bales (25kg each) of hay per year d. Cow needs 50 bales (20kg each) of straw per year for bedding e. Three calves per year at average life for fifteen years means a mature herd of 45 Thus a mature herd would cost the following: (Maintenance cost) + (Milking cost) + (annual costs for land and capital purchases) = cost per year Maintenance cost = 45 (herd size) x 350 (cost per member in pounds sterling) Milking cost = 405 (paid days) x 7 (milking time etc per day) x 6.60 (cost per hour in pounds sterling) Annual land and capital costs - whew a big topic ??? Thus: 15750 (maint cost) + 18711 (milking cost) + Capital and land = 34461 (pounds sterling) + capital and land The milk per year will be something like this: 3 calves per year at 25 litres per calf per day milk production = Average daily milk yield is 75 litres. Thus annual milk yield could be 27375 litres Therefore th cost per litre is = (34461 + land/capital) / 27375 If we do not include land and capital the cost to cover production is 34461/25185 = 1.26 pounds sterling per litre. Exchange rate is currently 1.86 dollars to the pound 1 litre is 0.26 US Gallons Finally 2.34 dollars for 0.26 gallons = 9.0 dollars per US gallon Summary Without including land and capital then a gallon of US milk would have to be sold at around 9 dollars just to break even. Land and capital is vast and depends on whether you are starting with a current farm or are buying or renting from the start. Hope this is of some help ys syam Quote Link to comment Share on other sites More sharing options...
Guest guest Posted September 23, 2006 Report Share Posted September 23, 2006 > Finally > 2.34 dollars for 0.26 gallons = 9.0 dollars per US gallon > > Summary > > Without including land and capital then a gallon of US milk would have to be > sold at around 9 dollars just to break even. > > Land and capital is vast and depends on whether you are starting with a > current farm or are buying or renting from the start. > > Hope this is of some help > > ys syam I have thrown out the figure of $10 a gallon in the past, using similar logic, including land and capital costs (interest cost of those, not counting accruing equity) and giving some value to the manure. Given competition with a tractor, the extra manpower and feed needed to work an oxen is a wash, really, unless used for value added nonfarm type stuff, like ox cart rides at a temple or something. Shyamasundara - do you mind if I blog this? Quote Link to comment Share on other sites More sharing options...
Guest guest Posted September 23, 2006 Report Share Posted September 23, 2006 For a month or two in 1988, I did the accounting for Gita-nagari's cow program. The figure that I came up for our operations was $10 per gallon of milk (give or take 50 cents). This was based on actual gallons of milk produced in one year (our Brown Swis were high producers) and actual costs to maintain the herd for a year. This was for a mature herd of animals. And also, we raised a significant amount of the inputs, hay, corn silage, etc. We also had a good rotational grazing program going in the summer. My son just got his undergraduate degree, specializing in economic development, so I asked him about rate of inflation on $10 from 1988. He said that the rate of inflation since that time was about 2-3 percent per year -- so I did a calculation based on a conservative figure of 2 percent inflation per year. Based on those calculations, to obtain the same value represented by $10.00 in 1988, you would have to pay at least $14.57 in 2006. That is, as economists say, ceteris paribus (all other things being equal). However, one big thing that would push the rate of inflation higher in agriculture than it would for the rest of the economy is that agriculture derives a much higher than average percentage of its energy costs from fossil fuels-- something like 93%. In other words, you are not going to use nuclear power or wind power to run a tractor. So, the actual cost of milk per gallon for a mature herd, in the US in 2006, on a farm that depends mostly on tractor based agriculture, would probably be something closer to $20 per gallon of milk. Naturally, when you are just starting out, costs are far lower, because you have no retired animals to maintain. But the fullness of cow protection is exactly in that point -- maintaining the retired animals very comfortably. That is why milk from protected cows --and even more than that grain from protected oxen -- is about the most opulent gift that can possibly be offered to the Deities. As far as I know, only the devotees in Hungary have this high standard of Deity worship -- that they offer only grains and milk produced by their own protected oxen and cows to Their Lordships. If it is not produced by their protected animals, they do not offer it. I don't think any other ISKCON temple is capable of offering such a high standard of Deity worship. In a separate text, I'll send a couple of my old Back to Godhead articles about the subject. your servant, Hare Krsna dasi - Mark Middle Mountain <gourdmad (AT) ovnet (DOT) com> Saturday, September 23, 2006 8:40 am Re: milk from protected cows > > > Finally > > 2.34 dollars for 0.26 gallons = 9.0 dollars per US gallon > > > > Summary > > > > Without including land and capital then a gallon of US milk > would have to > be > > sold at around 9 dollars just to break even. > > > > Land and capital is vast and depends on whether you are starting > with a > > current farm or are buying or renting from the start. > > > > Hope this is of some help > > > > ys syam > > I have thrown out the figure of $10 a gallon in the past, using > similarlogic, including land and capital costs (interest cost of > those, not > counting accruing equity) and giving some value to the manure. > > Given competition with a tractor, the extra manpower and feed > needed to work > an oxen is a wash, really, unless used for value added nonfarm > type stuff, > like ox cart rides at a temple or something. > > Shyamasundara - do you mind if I blog this? > > > ----------------------- > To from this mailing list, send an email to: > Cow-Owner (AT) pamho (DOT) net > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted September 23, 2006 Report Share Posted September 23, 2006 For a month or two in 1988, I did the accounting for Gita-nagari's cow program. The figure that I came up for our operations was $10 per gallon of milk (give or take 50 cents). This was based on actual gallons of milk produced in one year (our Brown Swis were high producers) and actual costs to maintain the herd for a year. This was for a mature herd of animals. And also, we raised a significant amount of the inputs, hay, corn silage, etc. We also had a good rotational grazing program going in the summer. My son just got his undergraduate degree, specializing in economic development, so I asked him about rate of inflation on $10 from 1988. He said that the rate of inflation since that time was about 2-3 percent per year -- so I did a calculation based on a conservative figure of 2 percent inflation per year. Based on those calculations, to obtain the same value represented by $10.00 in 1988, you would have to pay at least $14.57 in 2006. That is, as economists say, ceteris paribus (all other things being equal). However, one big thing that would push the rate of inflation higher in agriculture than it would for the rest of the economy is that agriculture derives a much higher than average percentage of its energy costs from fossil fuels-- something like 93%. In other words, you are not going to use nuclear power or wind power to run a tractor. So, the actual cost of milk per gallon for a mature herd, in the US in 2006, on a farm that depends mostly on tractor based agriculture, would probably be something closer to $20 per gallon of milk. Naturally, when you are just starting out, costs are far lower, because you have no retired animals to maintain. But the fullness of cow protection is exactly in that point -- maintaining the retired animals very comfortably. That is why milk from protected cows --and even more than that grain from protected oxen -- is about the most opulent gift that can possibly be offered to the Deities. As far as I know, only the devotees in Hungary have this high standard of Deity worship -- that they offer only grains and milk produced by their own protected oxen and cows to Their Lordships. If it is not produced by their protected animals, they do not offer it. I don't think any other ISKCON temple is capable of offering such a high standard of Deity worship. In a separate text, I'll send a couple of my old Back to Godhead articles about the subject. your servant, Hare Krsna dasi - Mark Middle Mountain <gourdmad (AT) ovnet (DOT) com> Saturday, September 23, 2006 8:40 am Re: milk from protected cows > > > Finally > > 2.34 dollars for 0.26 gallons = 9.0 dollars per US gallon > > > > Summary > > > > Without including land and capital then a gallon of US milk > would have to > be > > sold at around 9 dollars just to break even. > > > > Land and capital is vast and depends on whether you are starting > with a > > current farm or are buying or renting from the start. > > > > Hope this is of some help > > > > ys syam > > I have thrown out the figure of $10 a gallon in the past, using > similarlogic, including land and capital costs (interest cost of > those, not > counting accruing equity) and giving some value to the manure. > > Given competition with a tractor, the extra manpower and feed > needed to work > an oxen is a wash, really, unless used for value added nonfarm > type stuff, > like ox cart rides at a temple or something. > > Shyamasundara - do you mind if I blog this? > > > ----------------------- > To from this mailing list, send an email to: > Cow-Owner (AT) pamho (DOT) net > Quote Link to comment Share on other sites More sharing options...
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