Cow producing too much milk? Better kill it
By Owen Morris in News
Tuesday, Jun. 23 2009 @ 10:50AM
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It doesn't take an economics degree to know that something has to give.In California, the largest milk-producing state, dairies lost $1.07 per 100 pounds in April, compared with profits of $11.23 in July 2007, based on feed costs and milk prices, USDA data show. In January, the state was the most unprofitable in at least six years of record-keeping.
"We're all in survival mode," said John Gailey, 35, the general manager and a part owner of the 4,000-cow Milky Way Dairy near Visalia, California ... "I'm surprised we are not hearing about more people filing for bankruptcy."
That something is the cows. To "shift the pain to consumers," the
National
Milk Producers Federation is paying for at least 100,000 dairy cows to
be slaughtered.
The National Milk Producers are counting on this to make the price of dairy products soar. Even though consumers are hurting around the country, hopes are to see a "big spike up" in dairy-product prices in 2010, with record-high prices for butter and cheddar cheese, and a doubling in the price of milk futures.
The reason for the overpopulation is that it takes two years for a heifer to start producing milk, and in 2007, the milk industry couldn't keep up with demand. Prices were through the roof, and global exports were at an all-time high. Since then, in addition to a global economic meltdown, the third-largest milk drinking country -- China -- had a melamine milk scare that severely hurt sales.
So what happens to 100,000 dead cows? Most will end up on dinner tables. "More than three fourths of the cows [milk producer] Giacomazzi sold were purchased by beef processors including Cargill Inc."
So be on the lookout for good deals on steaks.
(Image via Flickr: Karen)
The National Milk Producers are counting on this to make the price of dairy products soar. Even though consumers are hurting around the country, hopes are to see a "big spike up" in dairy-product prices in 2010, with record-high prices for butter and cheddar cheese, and a doubling in the price of milk futures.
The reason for the overpopulation is that it takes two years for a heifer to start producing milk, and in 2007, the milk industry couldn't keep up with demand. Prices were through the roof, and global exports were at an all-time high. Since then, in addition to a global economic meltdown, the third-largest milk drinking country -- China -- had a melamine milk scare that severely hurt sales.
So what happens to 100,000 dead cows? Most will end up on dinner tables. "More than three fourths of the cows [milk producer] Giacomazzi sold were purchased by beef processors including Cargill Inc."
So be on the lookout for good deals on steaks.
(Image via Flickr: Karen)
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