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Factory Farms in the United States

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The United States harvests over 80 million acres of corn each year, or $63.9 billion worth. This is a surprising amount of corn. Even more surprising is that almost 40% of this corn is used to feed US cattle.1 But cows eat grass, don’t they? Not in the United States, where factory farms, also known as confinement farms, are status quo. The average heifer on a confinement farm weighs 1500 pounds2 - around twice as much as its New Zealand counterpart, lives half as long3 and is fed primarily on expensive (relative to grass) grain and corn. The US dairy industry is economically inefficient and environmentally unsustainable: There are too many farms in the West, where conditions are generally drier, and too few in the East, where demand for …show more content…

Corn was first used to feed cattle after the second World War, when there were large surpluses and prices were low, but the price has risen since from $1.30 in 19468 to around $5.00/bu9 today. According to Dr Richard Watson, chief scientist at Hart farms, confinement farms that use corn and grain as feed have costs in the range of $17-18/cwt and rely heavily on subsidies, such as the margin protection subsidy10. Comparably, Dr Watson says, grass-fed dairy farms run costs of $12/cwt. The operational costs of confinement farm dairies, that are higher than that of pasteur dairies, and Hart is a prime example of this, having developed a unique adaptation of the New Zealand grazing model, which enables Hart to be a cost leader by up to 50%11. Fig.1 Another aspect to Hart’s superior financial efficiency comes with their choice to locate in the Eastern state of Georgia. In doing so Hart are bridging the West-East dairy supply gap, for which over 400 million pounds of milk ($100mn) are transported from West to East every month12, thus eliminating thousands of trucking miles each day. The Dairy Farmers of America (DFA), who pick up the milk and take it for packaging for retail, pay Hart a premium for being on the East coast. Sufficient production will allow Hart’s milk to be branded as ‘Grass‐Fed’. Such products may warrant a 50% premium in the market (based off Hart management’s assessment of what current grass-fed / organic

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