#TGD: Dairy farmers mock milk price hike

Local dairy farmers ridiculed a temporary 25-cent increase in bulk milk prices approved by the California Department of Food and Agriculture this week, saying it’s not nearly enough to stem a crisis and bring income in line with high feed costs.“We pleaded, we met, we petitioned, and it’s all falling on deaf ears,” said Jamie Bledsoe, a Riverdale dairy farmer and board member of Western United Dairymen. “I think the department believes that a large number of dairy producers, cows, equity and economic activity has to leave the state for that price to correct itself. I’m disgusted with the department.”
“When considering changes to the formulas used to calculate the minimum price for milk, the department is obligated to balance the economic impacts on producers, processors and consumers to ensure there is sufficient milk to meet demand, and that demand remains consistent,” said Jay Van Rein, a spokesman for the state department. “Because of the competing interests of these groups, the department is often required to make difficult decisions.”
The temporary increase expires May. 31.
Producer anger boiled over in October and November in two dairy rallies on the steps of the state Capitol in Sacramento.
Their complaint is that they aren’t being paid as much as dairy operators in other states. They’ve been trying for two years to get the price of whey increased.
Whey, a milk derivative, is prized by processing companies as a lucrative source of value-added products like cheese and protein powder.
Producers accuse the California Department of Food and Agriculture of favoring large processors like Leprino Foods and Marquez Brothers that benefit from low milk prices.
“The [25-cent] increase is nowhere near what we asked for,” said Chuck Draxler, a partner at JCJ Dairy on Highway 198. “I figured we should have got at least 40-50 cents.”
Bledsoe said he thinks it should be a lot higher than that to be nationally competitive. A jump of close to $2 a hundredweight would bring things more into balance, he said.
“It’s very disappointing that we can’t get something in the state that’s fair and equitable,” he said. “We’re going to lose a lot more dairy farmers between now and the time it gets corrected.”
Making the problem worse are higher feed prices brought on by Midwest drought and corn grain going to ethanol production.
Local dairy farmers are increasingly frustrated — even ones that normally aren’t inclined to complain.
“We’re scared. We’re tired. We’re disgusted,” Bledsoe said.
Source: The Sentinel