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Milk COP steady in January, but well above a year ago


Milk COP steady in January, but well above a year ago
January 2013 total dairy feed costs were steady for a third straight month, helping hold the line on U.S. monthly average milk production costs. But, while the last quarter has been steady, feed and total costs to produce milk were well above those in January 2012.
Cost estimates are based on total farm costs per hundredweight of milk sold. Based on USDA’s January 2013 estimates:
• U.S. average feed costs were $15.10/cwt., up from $15.08 in December 2012 and $11.95 in January 2012.
• Operating costs (which include feed) were $18.25/cwt., down from $18.26 in December, but up from $15.09 in January 2012.
• Costs for allocated overhead, including labor, were $8.34 in January 2013, down from $8.43 in December, but up from $7.96 a year ago.
Add them all up, and total costs were $26.59/cwt. in January 2013, down a dime from December, but $3.54 more than January 2012.
The estimated all-milk price was $19.90/cwt. in January 2013, compared to $20.90/cwt. in December and $19.00/cwt. a year ago.
USDA/ERS Milk Cost of Production report, Feb. 27