Approximately 34,000 dairy cows will be removed from production and sold to slaughter houses through an "industry program to boost milk prices by curbing output" according to Business Week.
Concerns about low prices in the dairy industry have been widespread. Recently the U.S. Department of Agriculture and the Department of Justice held a workshop to discuss competition issues in the dairy industry. To read a US Ag&Food Law and Policy blog post on this subject, click here.
The most recent cull is financed by the National Milk Producers Federation (NMPF), after three "herd retirements" last year removed approximately 200,000 cows from production. Jerry Kozak, president and CEO the NMPF stated that this action "will push the cow numbers lower still, which is what our industry needs."
Milk production has increased even though the number of cows in production has decreased. Milk production rose 1.1 percent in May to 15.741 billion pounds from the previous year, while the dairy herd decreased 1.8 percent to 9.103 million, according to USDA statistics.
To read the Business Week story, click here.
Posted: 07/09/2010
