Here’s another story about dairymen and allied industries coming together to discuss the current milk market, and their concerns about it. Farmers in Ohio met to discuss the market effects of imports, marketing organizations and supply and demand, while a panel of experts spanning California to New York presented their plan for a new system of marketing milk.
Past U.S. Holstein Association President Doug Maddox said the fallout in dairy prices goes deeper than the current generation. He farms in California, where he operates RuAnn Dairy, one of the world’s largest registered dairy farms.
“This crisis that we’re in right now and how we solve it is as much about who and what controls our future, and our dairy industry, as it is about the prices and the current situation,” Maddox said. “Either the dairy farmers are going to control the industry and manage our supply and set our prices, or the processors and the large companies.”
Maddox said a dairy farmer is typically losing $3-$4 a day per cow, or $100 per cow per month. Farm equity is being turned into bank loans, and farmers are exiting the industry altogether, by choice or by force, and a few have exited by suicide, he said.
The meeting was organized by Ohio Farmers Union and a host of local sponsors in hopes of gathering more producer perspectives and educating farmers and consumers about the dairy industry.
New York dairy farmer John Bunting discussed the impact to the market of dairy processors and marketing cooperatives, as well as imported milk protein concentrate.
The country imported about 16 million pounds of milk protein concentrates in 2008, according to information Bunting compiled from the U.S. International Trade Commission. That’s up from 2007 imports of 14 million pounds, and 2006 imports of about 12 million pounds.
Milk protein concentrate is the industry term used to describe a form of processed, dried milk used in foods such as processed cheese products, macaroni and cheese, protein bars, nutritional drinks, candy bars and cookies.
Bunting is one of a growing number of dairy farmers who say imports are partly to blame for their struggles.
But not everyone agrees.
Maddox said imports are a factor but the industry is ultimately experiencing woes because of an imbalance of supply and demand.
“You can blame all the other things, but it all gets back to supply and demand; it’s economics 101,” Maddox said.
He is an advocate for the Dairy Price Stabilization program, a newly formed effort to stabilize the market through a mandatory, self-funded growth-control program.