DairyTalk 269: Higher Prices, Thinner Margins: The Hidden Costs of On-Farm Processing - by Helmut Demmelhuber

DairyTalk 269: Higher Prices, Thinner Margins: The Hidden Costs of On-Farm Processing - by Helmut Demmelhuber

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Using Clark Farms as a case study, this article takes a hard look
at the economic reality of on-farm dairies and direct-to-consumer
marketing. While retail milk prices can be significantly higher,
actual profit margins often collapse under the weight of
processing, labor, and distribution costs. The workload is
especially critical, with farm families frequently exceeding 100
working hours per week to keep both milk production and marketing
afloat. The analysis contrasts failed solo ventures with
successful models built on industrial scale or cooperative
structures. The key takeaway is clear: stepping away from
processing while continuing milk production can be a strategic
move - not a failure - designed to protect long-term stability
and quality of life. With comments on a "The Bullvine"-article
(January 30th, 2026) by Andrew Hunt: https://www.thebullvine.com



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