Walmart will be blamed, they are putting together their own dairy supplier, it’s complicated but they quit buying from the market and are buying through one large milk operation. It’s easy to hate on a big company, but they have their reasons for going this route too. The trouble is that they stopped buying a whole lot of milk from established places, and started buying milk from newly built dairies for the new operator. This means way too many dairy operions around.....
Folk found out if they get bigger and keep expanding they can produce milk a little cheaper and play with lots of money and look big. It works for a while, and milk gets cheaper, and so everyone is happy until it falls apart. Anyhow, it’s more profitable to have 9000 cows under you on 3-4 dairy locations and have very cheap labor do the milking. This gets us into the illegal immigrant politics.
Lot of kids want to follow their folks and farm; including dairy. What was a 40 cow dairy for dad, got expanded to a 120 cow dairy for dad, Jr, and the grand kid. They are looking at putting up a 400 cow dairy so the grand kid has something to work at..... this is, basically, the same as the Walmart deal, only 1000 little deals, instead of one big one....
Several places decided the only way to make it is brand identification, and they make their own milk, cheese, etc. control the milk from cow to kitchen table and make money from every step, small scale. The problem is the 40 cow dairy doesn’t do well at this; they need to be big enough to get shelf space as a store or cover the cost of all the govt regulations, and so soon they become the 10,000 cow setups that supply Mille to a several state region, calling themselves the mom and pop dairy with down home values. It’s business, they need to get market share to sell their product and cover costs, they end up all being exactly like the Walmart deal.....
Along the way, everyone wants to get more efficient to pay the bills, so we learn how to produce more milk per cow, per acre of silage, per gallon of water.... the 40 or 120 or 400 or 3000 head dairy part is producing way more milk per cow then they used to.
So the real short answer: more people want to be dairy farmers than there are people wanting to drink milk. The small places got way more efficient, the big places got way more cheaper cost of production. One makes a lot more milk, the other make ps a lot cheaper milk, together we get flooded with cheap milk.
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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