Penn State Ag Sciences Newsline -- April 3, 2007
Dairy farmers may struggle to stay in business as milk prices rise (:46)
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Suggested Intro:
THE NATION'S QUEST FOR ALTERNATIVE FUELS MAY PLAY A PART IN RISING MILK PRICES, AND AN EXPERT IN PENN STATE'S COLLEGE OF AGRICULTURAL SCIENCES SAYS SOME DAIRY PRODUCERS COULD BE GOING OUT OF BUSINESS AS A RESULT. GARY ABDULLAH HAS MORE:
Story:
(:16) MARKETING EXPERTS ARE PROJECTING RETAIL MILK PRICES TO RISE BY MORE THAN 30 CENTS BY OCTOBER, THANKS TO GROWING INTERNATIONAL DEMAND FOR DAIRY PRODUCTS AND RISING FEED PRICES TIED TO ETHANOL PRODUCTION. BUT PENN STATE DAIRY ECONOMIST KEN BAILEY SAYS DAIRY FARMERS PROBABLY WON'T BE GETTING RICH FROM THE PRICE INCREASE:
Bailey Actuality:
(:20) "FARMERS ARE NOW SHIPPING CORN TO ETHANOL PLANTS INSTEAD OF SENDING IT TO LIVESTOCK PRODUCERS. ACREAGE IS GOING FROM SOYBEANS INTO CORN, SO SOYBEAN PRICES ARE RISING. THAT HIGH FEED PRICE PUT A BIG CRUNCH ON THEM, THEY'VE LOST MONEY. JANUARY AND FEBRUARY, WE KNOW THAT PRODUCTION WENT DOWN, SO WE ARE EXPECTING A NUMBER OF DAIRY PRODUCERS TO GO OUT OF BUSINESS IN PENNSYLVANIA AND ELSEWHERE THE FIRST HALF OF THIS YEAR."(:10) FEWER DAIRY PRODUCERS MEANS A SMALLER MILK SUPPLY, SO CONSUMERS CAN EXPECT HIGHER COSTS IN THE SUPERMARKET FOR EVERYTHING FROM ICE CREAM TO BUTTER TO YOGURT. FROM PENN STATE, I'M GARY ABDULLAH.
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