Farmers are cutting back at dairies, meaning less product for consumers, which could mean a price hike at the grocery store... And it's all because farmers are paying more for feed, and getting less for their exports.
Dairy farmers took their fight to Sacramento, hoping to get the attention of State Ag Secretary Karen Ross.
Local farmer Steve Nash says he and his colleagues are getting less money for the milk they produce compared to other states.
"We're seeing many, many dairy families that are going out of business because of this."
In California, producers get about $16.50 for every hundred-weight of milk.
On top of that, they're paying about 40% more for feed, thanks to a drought in the Midwest, and the fact that 45% of corn is now used for ethanol.
The pricing has impacted dozens of dairies. Some have gone bankrupt. Others have shut down.
Protesters say Ag Secretary Karen Ross has the power to get California dairy farmers more money.
Assembly member David Valadao says farmers haven't seen anything yet. "And now with what's going on with the drought and what's going on with ethanol and those types of policies that are really raising our costs, it just compounded the issue, and we have dairymen filing bankruptcy, and it all falls squarely on the head of one person, the person making that decision."
Nash says relief is needed now, and that's why hundreds are marching in Sacramento.
"Dairy, we're about 20-21% of the United States milk supply right here in California. So keeping us strong and healthy is important for the consumer's dollar."
The California Department of Food and Agriculture issued a statement in response to farmers' concerns, saying, "Without reforms to the overall pricing structure to account for changes in dairy consumption patterns, and different marketing conditions in California, versus the rest of the nation, short term price adjustments may not be an effective approach."
Numerous requests have been made, asking the CDFA for an emergency hearing to to raise the amount of money dairy farmers are paid, but Secretary Ross has denied that request.
The CDFA did say it is now working to assemble the Dairy Future Task Force, which is a coalition that would make recommendations for price changes.
Officials believe this could establish long term stability for the dairy industry.
TXT 24
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