HT to World Dairy Diary.
Here is a story in a major newspaper, about the current dairy price situation. I think it contains some very telling statistics, especially that, while the price paid to farmers has declined by about 50 percent, the cost of milk in the store has only dropped about 2.4 %, with the cost of a gallon of milk only falling 14.7% in the past 12 months.
When the boss took those calves over to the sale barn the other day, he stood among three or four other dairy producers there to take their shellacking on calf prices because they simply have no other choice. They weren't anybody we knew, as this is still a farming region, although that may change. As they commiserated about trying to get by these days a kind of frightening statistic appeared. ALL of them are selling their cows in the next month. Every single one of those other dairy farmers, or dairy farmer kids are going out of the dairy business. Some of them figure on changing over to selling hay. I wonder who is going to buy it.
And just to add to the excitement, the VP of our milk cooperative showed up yesterday with the news that we are going to be shipping to a different market now. No idea how that is going to work out, just another challenge in a bowl full. Time will tell.
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