Dairy cows head for slaughter as milk prices sour
http://www.newsobserver.com/business/story/1407500.html
By TRACIE CONE - Associated Press Writer
Published: Mon, Feb. 16, 2009 06:39AM
TURLOCK, Calif. -- Hundreds of thousands of America's dairy cows are being turned into hamburgers because milk prices have dropped so low that farmers can no longer afford to feed the animals.
Dairy farmers say they have little choice but to sell part of their herds for slaughter because they face a perfect storm of destructive economic forces. At home, feed prices are rising and cash-strapped consumers are eating out less often. Abroad, the global recession has cut into demand for butter and cheese exported from the U.S.
Prices for milk now are about half what it costs farmers to produce the staple, and consumer prices are falling. Unless the market can be bolstered, industry officials project that more than 1.5 million of the nation's 9.3 million milking cows could be slaughtered this year as dairy operators look to cut costs and generate cash.
Farm Scene Cow Slaughter Farm Scene Cow Slaughter
AP Photo - Holstein cows owned by Ray Souza wait their turn in the milking parlor Saturday Jan 10, 2009 in Turlock, Calif. As of Feb. 2, the price farmers receive for a gallon of milk has been 80 cents a gallon, less than half the $1.65 a gallon the California Department of Food and Agriculture estimates it costs to produce.
"This could destroy our dairy infrastructure," said Mike Marsh, CEO of the United Western Dairymen trade association.
Three months ago, mature milkers would sell for $2,500 to another dairy, but with nobody buying, dairymen are selling them on the beef market for only $1,100 each.
there's profit somewhere
if someone wasn't able to do it profitably, nobody would be selling it that low. not the market's problem if the family farmers can't compete, and i for one don't think we should subsidize them for the sake of nostalgia, or any other reason for that matter.
if they are so worried about family farmers and high production costs of milk, they might want to look into eliminating some of the regulations and mandatory costs associated with farming. it also wouldn't hurt to get rid of the tyrannical property tax.
The milk at Walgreens here
The milk at Walgreens here has been permanently set at $2.49, and that used to be their sale price. And Aldi's has a permanent price of $1.99 now. (Indiana)
What do you mean by
What do you mean by permanently? As in price controls? Where are you located?
...
I wonder if I could
adopt a milk cow and tell my neighbor it's a new breed of dog. LOL
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This is True
Everyone this IS true. i spoke to a local dairy farmer Thursday and he said exactly whats in this article, he has been cutting his herd down and scraping buy.
Seems like BS
I don't know if the facts they put forward in this article are true or false, but it certainly seems like exaggerated BS.
I can pull a few dozen articles about milk hitting all time high prices, and just this one about dairies selling milkers for hamburger.
Regardless, I'd prefer the farmer is paid more directly, even if I must drive to a farmers market or co-op grocery.
I was just at the store
I was just at the store today, and was shocked at how cheap milk has gotten. Only $1.99 for a gallon. Of course, the organic stuff is still $7.99 and likely better, but being a half gallon a day consumer, I tend to stick to the cheaper stuff. And I still remember not long ago paying $3.99 for a factory farm gallon.
Makes you wonder...
I am in the SF Bay Area where everything is outrageously overpriced. (our rent is $3,000 per month to give you an idea) Most things are about double or even triple the cost of the same item back home near Norfolk, VA. I went to the grocery store today and milk has dropped to $2 per gallon, when you buy two, or $2.69 each. The cost of cheese, butter and beef have remained the same though. It got me thinking so I came home and searched here for a possible explanation. The article above possibly explains the drop in milk prices, but common sense tells us if that were the case then the oversupply of dairy cows being slaughtered for beef should reflect the same type of price drop there too. However since that is not the case and we know that Government agencies have their hands in the dairy business does it seem totally far fetched that there is a reason why we are being encouraged to consume more milk? I don't want you to think that I am some kind of crazy conspiracy theorist here however with what I have seen lately as evidence of what our Government agencies are capable of (Ex: Flouride in the water) it might stand to reason that they are tampering with the milk supply too. Just a thought....
OR maybe they are just trying to kill off the dairy cows to create a shortage later, like the rest of the food supply?
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What the?
Here in Ct we still pay 4.50 for a gallon of generic whole milk, $5 or $6 for local. Prices here have not dropped......
Colchester, New London County, Connecticut
can we say price fixing?
you got something rotten in your state....
as long as it's private
as long as it's private price fixing and not government price fixing, i don't have a problem with it.
I don't drink milk
and they say it's not the best source for vit D anyway. There are better alternatives for that. I also don't usually eat red meat. More fish and chicken is better anyway!
R3VOLution
I pay $8/gal for raw milk
I pay $8/gal for raw milk here in the pacific NW
I'm envious
I'd pay that much for it if I didn't have to drive 3hours to get to a raw milk dairy farm. But maybe with people buying less of the crap milk and they buy more raw milk, maybe the prices will come down.
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Check your dairy
Ours here in the PNW delivers to private home drop points once a week. I drive over to my friend's about ten minutes away to collect my milk . . . and it costs a lot less than buying the same dairy's milk at Wholefoods. Maybe yours would do the same sort of thing!
The dairys around here
look scary. I wouldn't buy manure from them. Which is why I'd have to go to New Mexico. They're the closes fertile land to me where cows won't actually die of starvation. And no whole foods here, and my local health food store doesn't carry raw milk. Apparently another state law thing. Soo...yes I might have to drive and get milk, cheese, cream, colostrum, and beef at the same time. I'd make the trip, but I need a deep freeze, time and a good amount of money first :)
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In Chicagoland milk prices have dropped
On loss-leader sale $1.88 ($2.29 common) a gallon.
Don't worry, they can't charge us more than we have, and markets are efficient and will find an equilibrium.
hey might not be losing money
@1.88
Very interesting,
especially considering that retail prices for milk are accelerating thru the roof at rocket-ship rates, while at the same time, the farmers are being told that they can't be paid even half their cost for their products.
Somebody's screwing somebody, and it is the agricultural cartels playing "monopoly middleman". They set the price that the farmers will be paid for their milk. And they set the price they will sell it to the retailers.
They're paying only half what they paid before, and charging 10x more for it.
Thieves!
Same old story, over and over.
Same old people doing it, again and again.
That's awful...
I'd much rather have butter & cheese than beef anyday
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very alarming news
Thank you for posting this article.
peace patriot*)
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