Depressed milk prices forcing more farmers out of operation

[TexasTowelie]

DES MOINES, Iowa (AP) — High production costs and falling commodity prices over the past four years are forcing more and more dairy farmers out of business in Iowa and other dairy states, according to agribusiness experts and farm groups.

"We're seeing a significant loss of dairy farms," said Larry Shover, president of the Iowa State Dairy Association board. "They don't see a light at the end of the tunnel."

Iowa is the nation's 10th-largest milk producer, with 1,150 dairy farms, and it's lost about 80 dairy operations this year — nearly 7 percent. Wisconsin Agricultural Statistics Service data show the state had 8,304 licensed dairy herds in October — 634 fewer than a year ago.

The global flood of milk has depressed prices to about half what they were in 2014, and they still haven't hit all-time lows, The Des Moines Register reported . But U.S. production has continued to increase despite the large number of dairy cows being culled from herds, said University of Wisconsin-Madison dairy policy analyst Mark Stephenson.

Read more: https://qconline.com/news/state-and-regional/iowa/depressed-milk-prices-forcing-more-farmers-out-of-operation/article_68e7eda7-1034-50c0-8bf1-2a77de6721cd.html

[hlthe2b]

1. My grandfather was a beef farmer, not dairy, but this so saddens me

His like faced similar decades ago when the corporate farms took over.

Our nation has never been especially kind to small farmers, but under Trump it will likely only get worse.

[A HERETIC I AM]

4. The dairy industry, as it was 50 or 60 years ago, is doomed

The fact is, cow milk is not good for adult humans. It just isn't. Sure, we still want butter and cheese and the other things that come from cows, but drinking milk past the age of weening is a uniquely human thing.

The more people become enlightened to that fact, the less need for dairy herds.

It's a tragic fact, but it is what it is. People by and large don't have root cellars anymore, either.

Diets change. The days of the family dairy farm are numbered.

[hlthe2b]

5. Well, there's one hell of a lot of longevity among the highest yogurt eaters (Soviet GA centenarians

as but one example).

So, milk is not, in and of itself, unhealthy. Far more complicated than that, but your eulogy for dairies is rather premature.

[A HERETIC I AM]

6. "your eulogy for dairies is rather premature."

Perhaps I should rephrase;

While the demand for certain dairy products remains strong - yogurt, cheese, butter, etc., the fact that less milk as a beverage is being consumed is not in contention.

The reason ( as I see it, anyway, and I am by no means a trader in dairy futures) that the small family farm is disappearing and the rise of the large, thousand plus head factory farm is flourishing is because of the simple economies of scale.

There will continue to be profitable family dairy operations that consist of 500 or fewer head, of that I have no doubt. There are specialty product manufacturers like cheese makers and whatnot that prefer to have a smaller supplier chain.

But the idea that everyone is drinking a glass or two of milk every day, as was once the norm, is no longer true.

[hlthe2b]

7. Family farms in general have been failing dating back to my late grandfather's era in beef

So, yeah, the small dairy farm is only the latest victim, but accelerated in its demise by disgustingly short-sighted Trump policies.

[hlthe2b]

8. Btw, only fluid milk consumption per capita are down. Trends for yogurt, butter, cheese

are up. See https://ageconomists.com/2016/05/09/got-dairy-look-dairy-consumption-trends/

[A HERETIC I AM]

9. Again, I am not by any means a dairy expert, futures or otherwise.

I just know what I read and experience myself.

The article you linked backs up my point about milk consumption and I would make the case that Yogurt consumption is more of a factor of it being effectively marketed as a sweet as opposed to something actually being healthy.

It just seems to me, based on what I have been reading over the course of the last 20 years at least, is that the small family owned dairy farm, basically a herd that can be handled by a staff of say...5 or so - meaning milking twice a day, cared for in winter etc., is going by the wayside.

Maybe I'm wrong.

I would be pleased to be proven so. But this all amounts to yet another double edged sword. Low milk prices are good for the consumer, but bad for the producer. High milk prices are good for the producer, but it means less milk is sold at the grocery store.

I heard an interview years ago with a dairy farmer and he was asked why more young people aren't attracted to this sort of farming.

To paraphrase;

"Who wants to work 365 day a year, tending a herd that does NOT take a vacation, servicing them twice a day for an income after expenses and everything else that amounts to about six bucks an hour?"

Answer?

Nobody.

[hlthe2b]

10. You seem to not be reading my posts as I surely have been making the same point re: family farms

since my very first posting on this thread...

who wants to be a small dairy farmer? Those whose only hope of holding onto family land is being one. The odds are so stacked against them now, it is unbelievable. That is NOT because their product is inherently unhealthy. Producers/manufacturers have made some products so.

Plain, unflavored yogurt is one of the healthiest foods one can eat.

[A HERETIC I AM]

12. I have been reading your posts and I was/am trying to add to your points, not contradict them....

EXCEPT I do take issue with your statement that milk is not unhealthy.

It absolutely is unhealthy for adult humans.

I am no fan of Trumpy, by ANY means, but you seem to be placing blame on him and his policies for a trend that has been happening for decades.

The point I am making is that humans are the only animal that actively seeks out the lacteal fluid of our mothers, much less ANOTHER MAMMAL, past the age of being weaned.

No other mammal does this. None.

It is not a healthy source of vitamins or anything else. There are better places to get all of the nutrients milk offers, with much less risk.

Humans have developed and consume all the other products made with cows milk for any number of reasons, including the fact that some of these products require no refrigeration and can keep a protein source viable for extended periods. Certain cheeses are an example.

The number of extant dairy operations compared to the demand looking forward is off balance.

That is the point I am trying to make.

[hlthe2b]

13. I said plain, unflavored yogurt, not fluid milk.

[A HERETIC I AM]

14. Perhaps my reading comprehension isn't what it used to be

So, milk is not, in and of itself, unhealthy.

https://www.democraticunderground.com/111683950#post5


I suppose at this point, a polite "whatever" may be in order.

Have a nice evening.

[hlthe2b]

15. Yogurt derives from milk does it not?

You are really becoming ridiculous. Milk is NOT inherently unhealthy for those who are not lactose intolerant and can actually be among the healthiest foods when cultured. Nothing about what I stated is not true. Most adults do not need to drink fluid milk, but that does not mean they need nor should eschew ALL forms of dairy, absent any specific health condition.

[Ferrets are Cool]

2. I can barely afford it now. I cannot imagine how much it would cost if

they were able to charge what is needed for them to make a profit.
Same as gasoline...if we (United States of America) didn't subsidize it with our military, we could not afford to put gas in our vehicles. Studies have shows that the TRUE price of a gallon of gas should be around $15.

[Ohiogal]

3. Milk prices may be depressed

but the price of butter seems to go up every time I make a trip to the store. ??