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Glut of Heifers Enter Milk-Flooded Dairy Industry

Semen-sorting technology bolsters herds, depressing already depressed prices

By Polly Davis Doig,  Newser Staff

Posted Sep 29, 2009 11:08 AM CDT

(Newser) – Times are tough everywhere, but dairy farming, never the industry of millionaires, is reeling from a double-whammy of its own making. Three years ago, new semen-sorting technology allowed farmers to ensure nine out of 10 calves born were female (bull calves largely end up in McDonald's wrappers and the like). Now, that glut of heifer calves is finally entering milk production—and running smack dab into an existing milk glut that's driven prices down about 40% since last July.

In a bid to cut supply and rally prices, an industry group has been paying farmers to cull cows—but the 230,000 head slaughtered since January are expected to be replaced over the next two years by the influx of heifers resulting from semen sorting, notes the New York Times. “This is a really exciting thing,” said one exec at a semen-sorting company. “And very difficult times. And you combine the two and realize it didn’t work as well as we hoped.”

In this March 11, 2009 file photo, a line of Holstein dairy cows feed through a fence at a farm outside Jerome, Idaho.
In this March 11, 2009 file photo, a line of Holstein dairy cows feed through a fence at a farm outside Jerome, Idaho.   (AP Photo/Charlie Litchfield, FILE)
This June 16, 2009 photo shows Tim Maikshilo holding open the mouth of one of his Holsteins in Coventry, Vt.
This June 16, 2009 photo shows Tim Maikshilo holding open the mouth of one of his Holsteins in Coventry, Vt.   (AP Photo/Toby Talbot)
This June 16, 2009 photo shows a Holstein cow at Coventry Valley Farm in Coventry, Vt.
This June 16, 2009 photo shows a Holstein cow at Coventry Valley Farm in Coventry, Vt.   (AP Photo/Toby Talbot)
In this March 2, 2002 file photo, a Holstein cow eats hay at the De Vries Dairy in Pasco, Wash.
In this March 2, 2002 file photo, a Holstein cow eats hay at the De Vries Dairy in Pasco, Wash.   (AP Photo/Jackie Johnston, FILE)
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When the world was short of milk we were all told, ‘We need more milk!’ Everybody was crying for more milk. - California dairy farmer Tony De Groot

It’s real simple. We’ve just got too many cattle on hand and too many heifers on hand, and the supply just keeps on coming and coming. - California dairy farmer Tony De Groot

Just as the industry starts to recover, we’re going to see these heifers enter the marketplace. At the very worst it could stop the recovery and send us into another price recession. - Ray Souza, president of
Western United Dairymen

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COMMENTS
Showing 3 of 4 comments
JoeQ
Sep 29, 2009 6:01 AM CDT
No bull market, eh?
awase61
Sep 29, 2009 5:57 AM CDT
facepalm
texasaurus
Sep 29, 2009 5:23 AM CDT
I'm sure this is a problem, but I think they're milking it.

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