Archive: Cost of Production Cost Comparison (2012-06)
The Cost Comparison Summary is used to monitor the cost of production on dairy farms. A summary is published for each of the four production areas, based on a quarterly basis. The comparison provides a statewide weighted average of all cost and allowances for each month. In addition to reporting costs for feed, labor, operating, replacements, and marketing, the Cost Comparison Summary include an allowance for return on management and return on investment (ROI). The ROI is based on the Moody's Baa Corporate Bond Index that is published monthly. The California Legislature has established statues requiring the Secretary to consider relevant economic ROI, when establishing minimum prices (Food and Agriculture Code, Section 62062).
