On the Fourth of July, to protest continuously low milk prices, dairy farmers in 15 states dumped thousands of gallons milk rather than sell for less than the cost of production.

Dairy farmers are nearly two years into a crisis that, at its worst, had them earning $9 per hundredweight of milk.

To put this in perspective, the average milk production cost—the break-even price—is between $17 and $27 per hundredweight, depending on the region of the country.

So, every time the milk truck comes for a pickup, farmers are not just giving their milk away, they’re losing money.

Dairy is an incredibly difficult topic to understand; so much so, that even agricultural policy experts have trouble with it.

But one thing that should be known is that this crisis is not the fault of dairy farmers. Family farmers enduring this crisis are not naive businesspeople. They are actually some of the most innovative and efficient producers in the country. Nor is this crisis simply the result of over-supply and decreased demand, as those who are benefiting would have us believe.

In fact, people in the U.S. consume more dairy products than our farmers can produce; the U.S. is generally a net importer of dairy products. The truth is that a combination of factors has led to this situation: a nosedive in milk prices, skyrocketing production costs, a tightening credit market, unregulated imports of milk substitutes, a broken pricing system that is vulnerable to extreme volatility and price manipulation, decades of lax antitrust enforcement, and increased consolidation in the industry.

When ‘Down the Drain’ is the Only Option

The milk dump that took place on July 4th is not something that dairy farmers take lightly.

The small milk check they receive doesn’t come close to covering their expenses, but dairy farmers need it more than ever. A milk dump is an incredible sacrifice for them. But the situation is dire enough that some think it could be worth it if it brings much needed attention to this issue.

Farmers cannot donate raw milk to food pantries. It is unprocessed, and neither the food pantry nor the farmer can take on that liability. As for market alternatives, while some farmers are able to take advantage of a burgeoning market for raw milk, the vast majority of farmers are restricted from doing so due to state regulations. On-farm processing requires infrastructure costs that put it out of reach for most farmers, especially in this economic and credit crisis.

We all (even those who don’t drink milk) rely on dairy farmers: for our milk and dairy products, as contributors to local and regional economies, for farmland preservation, and as part of the social fabric of our communities. More than ever, dairy farmers need our support and our understanding of this complex issue. Farmers and farm organizations have been working diligently since this crisis began to bring the issue to the attention of policy makers and consumers. The best thing that we can do for dairy farmers right now is to join them in gathering the attention that the issue deserves.

Price Supports? Or Supertankers Importing Milk?

Dedicated farmers and farm organizations have been working to bring this crisis to an end for more than a year now. Last July, 56 organizations sent a letter to Congress to press USDA to act immediately. The letter stated “for the imperative survival of tens of thousands of dairy farmers, the price of milk paid to farmers must be changed to reflect their cost of production. At a minimum, a floor price of $18 per cwt should be instituted immediately.” Congress and USDA could still make good on this request and have an immediate impact on the fate of dairy farmers. The Department of Justice has a role to play as well. To tell Attorney General Holder to take prompt action on ongoing investigations into antitrust issues in the dairy industry, click here.

Please call your representatives and tell them how important dairy farmers are to your state and region. And pass the word along: Dairy farmers need our support, and we need them to stay on the land.

Dave’s Note: In 1970 there were about 648,000 dairy farms in America; by 2006, only 75,000 remained. New York and Pennsylvania are each expected to lose up to 500 dairy farms by the end of this summer. Vermont will lose 200. Many farmers blame these losses on anti-competitive practices in the market. While wholesale prices have gone through the floor, the cost to the consumer has remained constant.

Additional Reading

A Day in the Life of a Dairy Farmer

David Fitch, Dairy farmer, local TV interview

FarmAid.org