Temporary price lift in future for CA dairy farmers

Struggling California dairy farmers will get a small reprieve beginning January with temporary price adjustment in the minimum price of milk, approved by the California Department of Food and Agriculture on Dec. 16.

According to the CDFA, consumers will notice an upswing of three cents more per gallon of milk.

A combination of dropping commodity prices, reduced consumption and increased feed costs have resulted in severe losses for dairy farmers statewide.

“It will certainly help out, but it’s by no means a permanent fix,” Tulare County Assistant Agricultural Commissioner Marilyn Kinoshita said.

She said the temporary increase may, however, allow dairy farmers to delay making decisions such as reducing their herds for a little longer.

Tulare County, as the largest dairy-producing county in the nation, will witness the effects of the three month-increase until its end in March.

“It’s going to help a little bit, but it’s not going to save anybody that’s going out of business,” dairyman Joey Airoso said.

Airoso, owner of Airoso Dairy in Tipton, said the increase is the state’s response to the dire straits in which California dairy farmers have found themselves throughout the past year.

According to Airoso, approximately 10 percent of California dairies have gone out of business this year. He said the reduction in production throughout this year of about 4 percent spurred the state into action.

“It’s just unheard of in California,” he said. “Never before have [prices and costs] been this far out of line.”

According to Airoso, prices have been trending slightly upward in the past couple months, possibly heralding an exodus from the industry’s doldrums.

Tulare Country Farm Bureau Executive Director Tricia Stever called the increase a “boost at a critical time.”

“A temporary plan is better than no plan at all,” she said.

However, Stever said there is still much work to be done to alleviate the reduction in consumption, especially from international markets.

“Once a dairy supply is increased, it’s hard to stop milking those cows,” she said.

Stever said herd reduction and retirement programs are currently one of the methods under exploration by some county dairy farmers.

While the state assistance may help in the short term, Stever said the dairy industry is “working to pull itself up by its bootstraps” in response to the devastating losses.

Struggling California dairy farmers will get a small reprieve beginning January witha temporary price adjustment in the minimum price of milk, approved by the California Department of Food and Agriculture on Dec. 16.

According to the CDFA, consumers will notice an upswing of three cents more per gallon of milk.

A combination of dropping commodity prices, reduced consumption and increased feed costs have resulted in severe losses for dairy farmers statewide.

“It will certainly help out, but it’s by no means a permanent fix,” Tulare County Assistant Agricultural Commissioner Marilyn Kinoshita said.

She said the temporary increase may, however, allow dairy farmers to delay making decisions such as reducing their herds for a little longer.

Tulare County, as the largest dairy-producing county in the nation, will witness the effects of the three month-increase until its end in March.

“It’s going to help a little bit, but it’s not going to save anybody that’s going out of business,” dairyman Joey Airoso said.

Airoso, owner of Airoso Dairy in Tipton, said the increase is the state’s response to the trouble faced by California dairy farmers throughout the past year.

According to Airoso, approximately 10 percent of California dairies have gone out of business this year. He said the reduction in production throughout this year of about four percent spurred the state into action.

“It’s just unheard of in California,” he said. “Never before have [prices and costs] been this far out of line.”

According to Airoso, prices have been trending slightly upward in the past couple months, possibly heralding an exodus from the industry’s doldrums.

Tulare Country Farm Bureau Executive Director Tricia Stever called the increase a “boost at a critical time.”

“A temporary plan is better than no plan at all,” she said.

However, Stever said there is still much work to be done to alleviate the reduction in consumption, especially from international markets.

“Once a dairy supply is increased, it’s hard to stop milking those cows,” she said.

Stever said some county dairy farmers are considering herd reduction and retirement programs.

While the state assistance may help in the short term, Stever said the dairy industry is “working to pull itself up by its bootstraps” in response to the devastating losses.

“It’s only a band aid... We still need to do a lot more,” she said.

Airoso said the temporary price increase is more beneficial than some recent federal programs because it will put more money in the pockets of dairies, both small and large.

“It’ll affect everyone equally — every gallon of milk the same,” he said.

California herds are much larger, on average, than those in the Midwest and other areas. Programs which cap payments based on farm production, such as some run by the U.S. Department of Agriculture, are often seen as favoring smaller dairies.

The average herd in Tulare County is approximately 1,300 cows. The price increase, Airoso said, will give dairy farmers an increase of about 15.5 cents per hundredweight.

Even so, stability, along with price increases, is needed for the industry to right itself once again.

“Until we get three or four months of decent prices, you’re still going to see people going out of business,” Airoso said.

-- Contact Sarah de Crescenzo at 784-5000, Ext. 1045, or sdecrescenzo@portervillerecorder.com.