High Dairy Prices Not Helping Farmers

By: Ashley Davidson
By: Ashley Davidson

Robert Fox would like to set the record straight about record high milk prices.

Fox is a dairy farmer himself. He says, "A lot of folks think that the dairy farmer is getting all these increases that they see in the cost of milk in the grocery store. But in reality they're not."

Dairy prices are averaging $3.33 a gallon for two percent milk, but last month local farmers only made about $1.40.

Carl Chaney is a dairy farmer. He says, "What we, I guess maybe, have a hard time understanding is why the prices are already up in the store, but we're not seeing it."

The problem now is the cost of production on these dairy farms is increasing and now they need more money for the milk.

Fox says, "The cost of production has risen dramatically within the last 6 months. Feed prices, diesel prices and fertilizers."

Chaney says, "My feed price a little over a year ago I was paying $150 a ton. Now its over $200 a ton."

Farmers are seeing a small increase in their milk checks.

Chaney says, "To see a 10 or 12 percent increase that we're seeing, the dairy farmer is seeing is very welcomed."

Yet there are already questions of how long the prices will stay strong.

Chaney says, "Nobody really knows. But I'm already hearing that by the end of the year that the dairy farmer's prices will be going back down. So it'll be interesting to see what the prices do in the store.

Fox says, "Hopefully they pay us what we need to produce milk and keep milk at a reasonable level for the consumer."

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