Low milk prices have dairy farmers killing cows Read Comments
ADVERTISEMENT
 / AP photo
Photo
Show caption
Tuesday, October 27, 2009 at 9:46 a.m.

Read more: National, Agriculture, Milk, Dairy, Farmers, Killing, Cows

DES MOINES, Iowa (AP) — After burning through $1 million in savings and seeing no end to their losses, dairy farmers Jake and Lori Slegers figured they didn't have much choice — they had to kill the cows.

So one day last summer their sons tagged all 1,571 cows, loaded them onto trailers at their farm south of Fresno, Calif., and watched them rumble away to a slaughterhouse.

Lori Slegers said her husband came into the house and broke down.

"He said it was the hardest thing he ever had to do," she said. "Luckily, my boys could do it."

Growing demand in developing nations drove up milk prices when times were good, and dairy farmers expanded their herds. But the global recession hurt exports and left farmers with too much milk on their hands. Milk processors cut the price they were willing to pay farmers, in many cases below what it cost to produce milk.

In the past year, hundreds of farmers have come to the same conclusion as the Slegers: The only way to raise prices is to reduce the supply, and that means killing cows. In some cases, whole herds have been turned into hamburger. In others, farmers have kept their best producers and sent the rest to slaughter.

The Slegers turned to an industry-run program called Cooperatives Working Together, or CWT, which pays farmers going out of business to kill — rather than sell — their cows and help remaining dairy operations by reducing the milk supply. Until this year, the 6-year-old program had paid for about 275,000 dairy cows to be slaughtered. This year alone, it has paid for more than 225,000 to be killed.

In addition, individual farmers are sending cows to slaughter at a pace of about 55,000 per week, said Robert Cropp, a professor emeritus at the University of Wisconsin. At that rate, about 3 million cows could be killed in a year.

Lifelong dairy farmers Keith Sammon, 55, and his brother, Mark, 53, decided to sell their herd to CWT last summer after considering the low milk prices, the cost of modernizing their operation and some personal health issues.

Keith Sammon recalled the somber mood as he loaded the 80 cows onto livestock trailers one Sunday morning at their farm in Faribault, Minn.

"As we milked the cows ... it was pretty quiet, but then my son came out with my granddaughter, who was 10 months old and she was just beginning to walk around. Just having her around made it easier," Keith Sammon said. "We would load the cows for a while and then go back and play with her for a while. It kind of took your mind off of it."

The slaughter has helped some. Dairy farms pay CWT 10 cents for every hundred pounds of milk they produce. As the cows have been killed, the price processors pay for milk has gone up an average of 66 cents per hundred pounds of milk, said Scott Brown, an assistant research professor for dairy livestock at the University of Missouri-Columbia.

Consumers haven't seen prices go up because processors still pay dairy farmers much less than the retail price, Cropp said. In fact, grocery store prices may still drop some because the milk supply remains much greater than the demand, he said.

That's because even as thousands of cows are killed and many farmers call it quits, others are increasing their herds. In Wisconsin, the nation's second-largest dairy producer after California, the number of cows increased to about 1.25 million in August, up about 5,000 from the year before, according to state figures.

Most of the growth was the result of state tax credits and grants approved a couple of years ago to help the industry modernize and expand. When those credits were approved, the industry was booming.

Also, Wisconsin farmers haven't been hit as hard as those in western states such as California, where farmers must buy more of their feed. High feed, utility and other costs have compounded the losses created by the drop in milk prices.

CWT spokesman Christopher Galen said most of the cows slaughtered in the program have come from western farms.

For the Slegers, the future is cloudy. They are still farming corn, sorghum and winter oats this year but are looking at moving away and starting over. They're not sure what they would do.

"We still don't know if it was the smartest move we ever made," Lori Slegers said. "One day, when the dairy business turns around, will we kick ourselves? We promised we wouldn't do that."

SPONSORED CONTENT
10 Comments on this Story
Comments are the sole responsibility of the person posting them; they are not reflective of the views or opinions of Barrington Broadcasting, NBC3, its directors or employees. If you believe a comment violates the Barrington Terms of Use, please report it here.

Direct sale dairy

Posted by Wendy T, Davison, MI - Saturday, October 31, 2009 at 10:47 p.m.

FYI ... Cooks Dairy in Ortonville, MI sells their own milk to the public as well as selling in local stores throughout MI and they also sell their own Icecream on site as well as in stores and Icecream shops around MI.

Buying Milk From A Dairy

Posted by SD Yader, Amarillo - Saturday, October 31, 2009 at 12:00 a.m.

There is a dairy down south of Canyon that sells whole milk directly to the public. They were on the news last week. Sorry, I don't recall the name of the dairy. As well, we have purchased direct from a local dairy for years. The reason most don't sell to the public is not legality but the fact that their milk production is "Contracted" ... they have sold it before its produced. Any farm or dairy can sell their products direct and many do if you are willing to go through the trouble of buying direct. We have for years.... and certainly will continue! Contact any rancher, farmer or dairyman.... they need these sales and are most appreciative!

Its sad that Plains Dairy... which is NOT a dairy but a processor charges more for milk & dairy products in Amarillo than anyone else. Their prices are always highest. BUT... they rip off the dairymen every chance they get. BUY DIRECT! SD.

Cows?

Posted by Red Tarted, in my house - Friday, October 30, 2009 at 2:43 p.m.

I get my milk from my cat.

Mr. Smith

Posted by John Galt, Amarillo - Wednesday, October 28, 2009 at 9:53 a.m.

It is unlikely you will find a dairy that can sell you milk directly. There's too much government regulation for them to do that ie instections, processing, forms, tax code etc....It's not worth the trouble for them. But good luck, tell us if you find one.

Fred Hawksley

Posted by R S, GC - Wednesday, October 28, 2009 at 2:00 a.m.

Fred Hawksley that is not going to work, supply is not the problem. We want the prices farmers get for their milk to go up. Not create more supply. Demand needs to go up.

Find a farmer and buy your fresh milk directly for him. I worked on a dairy farm a few years ago and nothing beets fresh milk. You can pasteurize it yourself for nothing.

If you are a dairy farmer in the area of Kirksville or Milan e-mail me I would be interested in buying my milk from you directly. Smith_r_d@yahoo.com

Farmers getting screwed again

Posted by Dairy Farmer, Mid-Mo - Tuesday, October 27, 2009 at 5:16 p.m.

What people fail to realize is that the prices in the store dont usually drop, at least not at the rate that the price for raw milk does. When the price of raw milk goes up, be sure to know milk goes up in the store too but when the price for raw milk falls, it doesnt usually do that in the store. Its a never-ending process which has led to prices always higher in the store and prices never really ever getting better for the dairy farmers. Sooner or later they are gonna run all the farmers out of business and then what?? Will we have to import our milk from China too?? Who would want that??

Last I checked

Posted by Just Me, Right Here - Tuesday, October 27, 2009 at 1:13 p.m.

I pay way more for milk now than I did a couple years back, so what gives? Are the stores marking the price up so they make a profit like gas companies did last summer? Hmmm...

The Price of Burger Gonna Go Down?

Posted by yooper vern, powers - Tuesday, October 27, 2009 at 12:53 p.m.

With the increases in gas and electric (looking like no end in sight) I can understand the small guy getting fazed out again. It doesn't pay to be a small business anymore. It is sad they have to go to such extremes to make a small profit.
Maybe stop using the milk producing drug on the cows?

Think before you post

Posted by j p, midwest - Tuesday, October 27, 2009 at 12:37 p.m.

If everybody quit drinking milk for any period of time like you suggest it would inflate the supply and drive prices down further. What people need to do to help the farmers is to drink more milk. This would deflate the supply and help to raise prices. That's how supply and demand is supposed to work. The problem is that people don't have the money to buy more milk with because manufacturer's have downsized most other products in the grocery stores. This has forced the consumer to have to pay more money for the same amount of products that they normally buy. Companies have done this stealth product resizing so they don't have to raise prices to the retailers, but it still raises prices for the consumer in an underhanded way.

Quit Drinking milk

Posted by Fred Hawksley, Central NY - Tuesday, October 27, 2009 at 11:23 a.m.


HEY let us quit drinking milk for a week for 2 weeks for a month. Let us coordinate it so we ALL do it the SAME WEEK THE SAME 2 WEEKS THE SAME MONTHE. That should SHOCK the socalled supply and demand
come on, lets help out OUR FARMERS.

Agriculture
ADVERTISEMENT

PopularCommented


CONSUMER INFO