The dairy industry continues to suffer along with the economy across the country. Whether traditional or organic, dairies from California to Maine continue to lose money as the demand for milk has decreased. Feed and energy prices have increased and overall demand has decreased. Some of the hardest hit operations appear to be the organic dairies which have shown remarkable growth before the beginning of the recession. As consumers try to save money by reducing expenditures on food one of the first switches that they appear to make is to go from organically produced milk back to regular milk. This switch is causing havoc on the east coast where according to an article from the New York Times:
Traditional dairies are also suffering from the recession. According to the Los Angeles Times:
Economists point to signs that the recession may soon be over, however dairy farmers throughout the country are still feeling the effects with no end in sight.
…in New England, where dairy farms are as much a part of the landscape as whitewashed churches and rocky beaches, organic dairy farmers are bearing the
brunt of the nationwide slowdown, in part because of the cost of transporting feed from the Midwest. The contracts of 10 of Maine’s 65 organic dairies will not be renewed by HP Hood, one of the region’s three large processors. In Vermont, 32 dairy farms have closed since Dec. 1, significantly altering the face of New England’s dairy industry.
Traditional dairies are also suffering from the recession. According to the Los Angeles Times:
The California Milk Advisory Board continues to ply its "Happy Cows" advertising campaign, but there are few happy dairy farmers right now. Frustrated with low milk prices, dairy farmers are selling cows for hamburger meat and threatening to dump milk into sewers. Many are burning through their life savings hoping to survive the slump, and others are exiting the business.
Economists point to signs that the recession may soon be over, however dairy farmers throughout the country are still feeling the effects with no end in sight.
Posted: 5/29/2009
