Last Years Prices Matched Prices in the 1980's
EMMET CO., MI -- John Wayne once said, "Get off your horse and drink your milk."
Local dairy farmers say last year, it seemed everyone stayed on their horse as they watch the prices drop to a historic low.
"Last year was probably the toughest year I've had since I've been in the business," said Dairy Farmer Bud Boss.
And he's been in the business long enough to retire. Bud Boss has been milking cows for 33 years. He said add the downturn in price last year with high energy and fertilizer prices and you get one bad year.
“It really hit the dairy industry hard," said Boss.
Boss said that milk dropped to $11 per hundredweight last year, which is lower than the price he got paid in the 1980's for it, $12.15.
“You know what the costs have done since 1980, so that's what made it tough last year," said Boss.
So tough, it actually cost him money to sell milk. According to the MSU Extension, the prices are based on supply and demand. Supply is based on the number of cows in the U-S and the production per cow. Demand is the U-S consumption combined with exports. Last year, supply was high, demand was low. To help with this year's prices, the number of cows was reduced. Through a program called Cooperatives Working Together, more than 200-thousand cows were removed in 2009. This has helped the cost bounce back from 11 dollars per hundredweight received last year to an average 16 dollars this year.
“This year's bounced back some, right now, we're breaking even, and I think most of the industry should be close to breaking even, it depends on the cost of their production, and their debt load, but milk has, I mean, fluctuated this year, we thought it'd be better than it is, but for us, we're breaking even, and I'm thankful for that," said Boss.
There's one way to help local dairy farmers out. Milk, cheese, and ice cream.
