February 16,2015
Milk Price Slump
Exports of milk products in December are down 21% from a year earlier and the slump is hitting the dairyman in the pocketbook.”Our milk prices are down 25% from November and it kind of puts a bind in the party” quips Tulare County dairyman Tom Barcellos.The drop in prices follows many months of good returns however, and Barcellos is stoic.
“I can’t believe anyone would be surprised that something like this would happen.”
One major factor is the decision by China to shut down purchases of milk products from US suppliers including local co-ops . The drop in demand has hit member milk checks starting late this summer.”The Chinese appeared to overestimate demand as well as understate their own production.”
Regarding plans by the co-ops to move to a federal order Barcellos , who is president of Western United Dairymen, counsels a wait and see attitude noting the final deal is two years off. “We need to get the best prices from CDFA in the meantime”he says, “or we will have more dairymen going out of business.”
The industry is Tulare County’s largest.