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Market Commentary and Intraday News

Calif. dairies strained by feed, milk prices

234 days ago

By GOSIA WOZNIACKA
Associated Press

(AP:HANFORD, Calif.) Across California, the nation's largest dairy state, dozens of dairy operators have filed for bankruptcy in recent months and many teeter on the edge of insolvency. Others have sold their herds or sent them to slaughter and given up on the business.

Experts say the Midwest drought has led to corn and soybean costs increasing by more than 50 percent this summer, stressing dairymen everywhere.

But in California, where milk prices are set by the state, prices have also lagged behind those in the rest of the nation, exacerbating the crisis.

Dairy groups filed suit in August, alleging the state failed to follow the law when it refused to increase the minimum price of milk sold for cheese to bring it in line with prices around the country.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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