Washington state dairy farmers feel pinch of low milk prices, fear bankruptcy - Triangle Business Journal:

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Milk has been selling for $11 or less for each 100 poundd for the pastsix months, which is abouf $4 less than it costs farmers to said Jay Penick, CEO for in an agriculture cooperative that loands money to farmers. Dairy farmers’ current crediyt lines are primarily based on the value of cows and he said. “That’s exactly what’s keepin them going right now, is they’re using borrowex money to make up the difference on amonthly basis, to make up the difference between income and he said. “This is more severe than I can rememberin 30-somethinyg years.
” There are some large dairies in the Yakimaq Valley, with herds of 4,000 to 5,000 that are losing $500,000 a month, accordingt to Blair Thompson, consumer communicationxs manager for the . Milk prices have droppedr from $18.52 per hundredweight last May to $12.8q per hundredweight this May forseveralp reasons: — Farmers in recent years had been exportingh milk into Asian markets traditionally supplied by farmers in Australia and New as production there was trimmed by drought. But thosd industries have partly recovered, and are now competinyg in Asia again. — Weak overseas economies are undercuttingh otherexport markets.
— Local farmers had built up herd and facilities to meet stronget demand just a fewyears ago, and are now stucok with associated higher expenses, and a flood of milk production that can’g easily be turned off. As dairy farmers struggle to survive, the organizationj that sells their milk is trying to help is made up of 530 dairy farmers in Washington and and it in turnowns , the Seattle-based milk company that processeas most members’ milk.
To help memberes survive, the association has passed on to member dairiee anextra $13 million in its profitsd through a retention program, and may give back more money that otherwiss would have been invested in Darigold said Steve Rowe, senior vice president of Northwest Dairyg Association.