-
Essay / The Effects of the Economy on Dairy Farms - 597
The recent economic downturn has made business especially difficult for dairy farmers in Utah and beyond. According to NPR, in 2007 and 2008, milk prices reached an all-time high. However, as the country's economic situation deteriorated, demand for dairy products declined and raw milk prices were expected to reach their lowest level since 1978. Today, many dairy farmers are losing more money than they cannot earn any from the sale of milk. and some farmers are resorting to bankruptcy or selling their herds. A recent ad from the Utah Dairy Council claims that in four years Utah has lost 28 percent of its family dairy farms and that the number of families operating dairy farms in the state has now fallen to 240. While prices for Milk fell, the cost of feeding and caring for livestock did not. According to a March 2009 KSL report, farmers say demand for crops used for ethanol during the summer of 2008 caused the price of animal feed to rise, and then the milk market collapsed. The short shelf life of milk makes the dairy industry particularly vulnerable to difficult economic times. Unlike other products...