December 27, 2010

US dairy industry to encounter tough year in 2011

US Wisconsin dairy farmers are expecting 2011 to be very tough for their industry partly due to a payment system which leaders said is well below what is required for many farmers to break even.

Due to milk overproduction and high feed costs, milk market prices are expected to drop in 2011, possibly as low as US$13 per hundredweight. Wisconsin dairy farmers also experienced the same problems in 2009, and industry experts had hoped this year would be one of recovery.

Prices did improve in 2010, but only sufficient for many farmers to break even. Dairy producer, Paul Rozwadowski of Stanley, is with the National Family Farm Coalition. He said farmers took drastic actions to survive 2009, using their savings, cashing in retirement accounts, or borrowing money. He said it will be more difficult for farmers to withstand the next year because they will not be able to depend on those financial resources.