February 18, 2009
Plunging milk prices prompt US dairy farmers to process cattle into beef
Hundreds of thousands of US dairy cows are being processed into hamburgers because milk prices have dropped so low that farmers can no longer afford to keep the animals.
Dairy farmers said they have little choice but to sell part of their herds for slaughter due to rising feed prices and poor global dairy demand.
As of February 2, farmers receive only US$0.80 for a gallon a milk, less than half the production cost of US$1.65 per gallon. With consumer prices also declining, more than 1.5 million of the country's 9.3 million dairy cows could be slaughtered this year as dairy producers look to cut costs and generate cash, unless the market receives a boost, industry officials said.
That could destroy the dairy infrastructure in the US, said Mike Marsh, CEO of the United Western Dairymen Association.
Three months ago, mature milkers would sell for US$2,500 to another dairy, but with zero demand, dairy producers are selling them on the beef market for only US$1,100 each.
