Milk in trouble (not the movie) [View All]

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http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/01/12/MNIG1557P9.DTL


Business souring fast in state's dairy industry


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In six months, farmers have seen the price paid for their milk cut nearly in half, from $20 per hundred pounds of milk in June to just above $10 per hundred pounds of milk today. International demand for America's dairy products - which had soared in recent years - has dried up. And recession-conscious consumers are cutting back.

The U.S. government has stepped in to buy surplus milk, much of it from California. More than $92 million has been spent on nearly 115 million pounds of surplus nonfat dry milk.

"It's shocking where we are today," said Michael Marsh, CEO of Western United Dairymen, representing 1,000 of the state's 1,750 dairy producers. "Farmers are hemorrhaging cash. Global demand has fallen off a precipice. People are not dining out as much."

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"You can't just turn the cows off," said Marsh. "The cows need to be milked, fed and cared for. It's 24 hours a day, seven days a week."

Beginning next month, Marsh's organization will hold a series of meetings with dairy industry experts from across the globe, looking at how California can be more competitive during the recession. Planned talks range from global markets and plant capacity to working with legislators.
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sigh