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As Milk Prices Sour, Cows Head to Slaughter

Farmers can't afford to keep them

By the Associated Press

Posted Feb 16, 2009 9:17 AM CST

(AP) – Hundreds of thousands of America's dairy cows are being turned into hamburgers because milk prices have dropped so low that farmers can no longer afford to feed the animals. Dairy farmers say they face a perfect storm of destructive economic forces: At home, feed prices are rising and consumers are eating out less often. Meanwhile, abroad, the global recession has cut into demand for butter and cheese exported from the US.

Milk now costs about half what it costs farmers to produce it, and consumer prices are falling. Unless the market can be bolstered, industry officials project that more than 1.5 million of the nation's 9.3 million milking cows could be slaughtered this year. "This could destroy our dairy infrastructure," says the CEO of a dairy trade association. On the beef market, dairy cows sell for about $1100 each—less than half the $2500 a mature milker would fetch.

Dairy farmer Kirk Christie prepares to milk cows in his barn in Slater, Iowa, on May 13, 2008.
Dairy farmer Kirk Christie prepares to milk cows in his barn in Slater, Iowa, on May 13, 2008.   (AP Photo/Kevin Sanders)
Arlen Schwinke, a retired Missouri dairy farmer who rents his cows to other farmers and retains ownership of the offspring, pets one of his Holsteins on March 10, 2008.
Arlen Schwinke, a retired Missouri dairy farmer who rents his cows to other farmers and retains ownership of the offspring, pets one of his Holsteins on March 10, 2008.   (AP Photo/Whitney Curtis)
In January, 262,500 US dairy cows were slaughtered.
In January, 262,500 US dairy cows were slaughtered.   (AP Photo/Dave Weaver)
Farmers now receive about 80 cents for a gallon of milk, half what it costs to produce.
Farmers now receive about 80 cents for a gallon of milk, half what it costs to produce.   (AP Photo/Paul Sakuma)
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Copyright 2012 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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