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Dairy cow prices have fallen $500-$650 over the past 12 months to reach their lowest levels since 2009. The fall in prices has mirrored the drop in dairy the payout with the average milking cow now costing around $1500-$1600 compared to $2100 in June 2014.
Very volatile milk and feed prices present a challenge for dairy farming. Costs to produce milk differs significantly â the range is from 4 to 128 US-$ per 100 kg milk. From 2000 â 2012, cost of milk production increased in all countries analysed.