In Colorado, the price of milk has gone up slightly, giving dairy farmers a little room to breathe after drought conditions have driven the price of animal feed up. The price of corn has gone up by 50% this summer, and alfalfa and soybeans have followed similarly. However, the price of milk does not often see sharp increases, which means in tight years like this year and 2009, means dairy farmers get squeezed.
In response to the high feed prices and anticipated low profits for the year, many dairy farmers will likely slaughter a portion of their livestock. Culling herds is a difficult choice, but often inevitable.
Consumers may be dismayed to see the price of milk at the grocery store rise, but it will grant a little relief to the dairy producers.
Source: CBS Denver
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