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Article: Tarnished gold.(effects of increase corn prices on the dairy industry)
- Article from:
- Dairy Today
- Article date:
- April 13, 2007
- Author:
CopyrightCOPYRIGHT 2007 Farm Journal Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Catherine Merlo
Bad consequences
* High corn prices, fueled by ethanol demand, are driving feed costs up 30% to 60%.
* Hard-hit California dairies are borrowing against their equity to pay their bills.
* For more information, click here.
Since last summer, California dairy producer Steve Nash has spent $140,000-or 65%-more on corn feed than he did the year before. With his milk prices hovering below the cost of production, Nash is paying $185/ton for corn, up $65/ton from mid-2006.
Although he grows much of the feed for his two dairies south of Fresno, Nash supplements his herd rations with corn imported from ...