Monday, January 4, 2010

What Part of the 'Pie'?

Continuing with questions people have on how the processors and retailers are getting the same amount of money in the last two years as prices fluctuated, but we are getting less......
Is it legal for the dairy farmer to get such a small part of the 'pie'? It is legal under current legislation. We believe we need drastic changes.
What bothers you most about this inequity? It is hard to narrow it down to one thing! My husband keeps asking the question, that 'if there truly is such a current surplus of milk, then why aren't you seeing much lower prices in the store?' Then maybe you would buy more gallons of our milk!
Can you explain this inequity in other terms? The retail price you paid in 2009 is only down about 15% from the year before, but the price the farmer got for most of 2009 is down %50 from the year before.
How does your income compare to dairy farmers in past years? Our fathers made more in the 1970's for a gallon of milk than what we were making in 2009. The reason why is because all of our expenses have increased dramatically: feed, vet bills, fuel for our tractors, fertilizer, health insurance and workman's compensation insurance, fire and liability insurance, taxes, electric, repairs and parts, wages, and especially equipment.
Why should it matter what happens to the American Dairy Farmer? At this rate of minimal income, we dairy farmers literally cannot stay in business for very long. And realize that a dairy farmer who sells all his cows, will rarely ever go back into the dairy business again. Please read that sentence again. Dairy farming is a complicated business that one cannot just jump out and back into.
So why not get our dairy products from overseas? Believe me, I would never want to get my dairy or meat products from any place else than the USA where we have excellent and regular, federal inspections of the highest standards to monitor the safety of our food.

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