California Dairy Farmers Face High Feed Prices, Low Milk Prices
Being a California dairy farmer is no walk in the park right now, with high feed prices and low milk prices. One farmer calculates he's losing 50 cents on every gallon of milk produced. The Sacramento Bee has the story:
California's dairymen are in an especially difficult position, because there aren't enough processing facilities in the state for all the milk that dairy cows here produce. Stringent permitting requirements often lead processors to build new facilities in other states, leaving California with an oversupply of raw milk. As a result, farmers are at a disadvantage in negotiating better prices from California processors.
Last month, in response to a petition from farmers, state Food and Agriculture Secretary Karen Ross changed the formula that determines the price cheese manufacturers must pay for the whey component in milk. The adjustment immediately raised the price about 4 cents per hundred pounds of milk, an increase of less than 1 percent.