In 2014 dairy farmers had a banner year, their cows churning out record high-priced milk producing historic sales, but with less demand projected in 2015 and perhaps 2016 they’re bracing for milk prices to fall.
“With the huge cow population that’s in the United States right now that’s my projection I think it is going to go down,” said Luxemburg dairy farmer Dave Jauquet.
During the next two years agriculture experts believe milk prices could plunge to a point where some milk producers won’t break even.
“Some of the farms will exit the business. Liquidate the cows, let the barn empty. Sell machinery, sell land. Sell the whole farm,” said Jauquet.
Meanwhile, at area grocery stores if shoppers want to pick up some milk store managers say consumers can expect to save some cash.
“I know last month it had gone down and probably again this month I would imagine,” said Stodola’s IGA Manager Alex Stodola in Luxemburg.
But cheaper milk doesn’t necessarily mean bigger sales numbers for the dairy aisle.
“I think for the most part people buy the same amount, but they’ll save a little bit. They might buy extra and do more baking, or use it as an ingredient,” said Stodola.
Back out on the farm the milk keeps pumping and dairy farmers are even rooting for their competitors.
“You want everybody to stick around. Whether you milk 600 cows, 60 cows, or 6000 cows. We need everybody,” said Jauquet.
Source: WBAY
