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Adirondack Case Guy - Whats going on in NY wilk milk?

H

Hotflashjr

Well-known Member
Location
Western MA
I had this article passed across my desk at work. Says an 8 farm dairy co-op was dropped by their buyer/handler. Milk prices are real soft here in MA and going to continue the trend down into the summer but we haven't heard anything like this yet. Agri-Mark is almost the only game in town in MA with a few folks selling to DMS. At the last dairy meeting I attended they were saying $15 milk but no mention of anything like this happening. Hope your family is not part of the 8!
NY Milk Co Op dropped by handler
 

I'm not sure what the story is, but I know there are a lot of real nervous dairy farmers around here. Middle sized guys, not the 2500 head BTOs. Things aren't looking any too good around here.
 
Well yesterday, the farmers in the coop signed contracts with several handlers/processors for their milk. Ray Dykeman the coop president was on the Albany news station last evening and said that meetings all week with political figures such an Senator Chuck Schummer and other officials were able to make a deal where the coops milk will be sold to several markets in NY, MA, Conn, and NJ. I don't know the legistics, but yesterday was the deadline.
I personally know all these farmers, and they are all family farmers, not corporate owned enterprises.
The real problem is that the american consumer is not drinking as much milk as they used to.
The other ripple effect is these producers have the savi to market their milk, and the small independant farms with small heards (50-100 hd) may loose their buyers.
The uncles here stopped shipping milk about 10 years ago, and now raise cash crops and board heifers during the summer months.
Loren
 
Here in MA we have very few dairy farms that are over 100 cows. I can count them on one hand! We have many people here making cheese or setting up their own small bottling plants as well as selling raw milk. Agri-Mark has "allowed" their producers to use 15% of their total production for direct marketing sales if they wish. The problem I have seen is that it typically takes enough capital to use that 15% that it is a 3+ year pay back. The ones who have done it are doing well but even that market is getting saturated in certain areas.

Agri-Mark was saying the Northeast was getting flooded with "western" milk and products two months ago and that was driving prices down. Butter prices were down and exports were down which caused a nearly $4 drop in milk price in January. Through work I already know of two dairy farmers who are selling their herds and getting out. They are focusing on other products like maple, beef, hay, etc. It really is a shame!

Glad to hear the family is not shipping milk and hopefully the trickle down does not cause them any pain in the future.
 
Sounds kinda fishy to me. An 8 farm coop? Sounds like the eight farms made some extra money when the market was strong and now oops we need help. And going to the government for help? realy? Anybody can sell milk in a strong market for a good price it's when the markets are poor you are gonna have to adjust. He said he had a 30 contract, if you knew that you need to adjust the price and try to stay. As far as too much milk in N.Y.S. maybe but plants will always buy it not always at a profitable number. I tell you what will happen, these guys milk will still get picked up maybe by the same plant but not for the same price. Big Sal
 

Heard some talk here yesterday that high milk prices resulted in a glut of milk on the market. If that's true, it's just like every other cycle where milk gets high, everyone buys more cows, ups production and then Kraft dumps 300 box cars of cheese on the market and drives the price down. Supply and demand. Add ridiculous taxes, lower dollar, nervous consumers...it's going to happen. Farms will close.
 
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