Posted on 10/30/2010 3:24:39 PM PDT by pterional
Still wobbly from nearly a two-year price skid, California's struggling dairy industry is suffering another blow: rising feed costs.
Feed prices have spiked in the last several weeks, jumping nearly 30%.
A smaller-than-expected Midwestern corn crop, competition among ethanol producers and fewer alfalfa acres have all contributed to higher feed costs.
And analysts expect feed costs -- a major expense for dairies -- to remain strong through at least the beginning of 2011.
That comes as bitter news to dairy operators who lately had been benefiting from higher milk prices
Read more: http://www.fresnobee.com/2010/10/29/2137871/valley-dairies-struggle-with-high.html#ixzz13snR6BYz
(Excerpt) Read more at fresnobee.com ...
Inflation is starting to effect agriculture production.
Gee,we only pay 99 cents for a gallon of milk where we live.
Our government is so stupid, it's pathetic.
I just visited NY after not being there for a while. While doing some grocery shopping, I saw prices are really rising there.
I thought, inflation, here we come. Hallmark of a Democrat presidency.
As a boy we fed the milk cows corn silage with grain and hay for the winter.
STOP TURNING FOOD INTO FUEL.
It’s just plain stupid, it raises the cost of food, it destroys rubber in auto’s and in boats it’s the kiss of death.
Drill Baby Drill.
I have a good idea. Let's burn our food!
food prices are going to skyrocket
Sarcasm, right?
No,that’s what the cost of milk is here in TX.at Kroger.99 CENTS a gallon!
How is that possible? Even at our Walmart it’s $2.99. At the “regular” grocery store, unless it’s on sale for Walmart price, it’s typically close to $4.00 a gallon.
I don’t blame the dairy farmers, I know they’re getting squat.
I have no idea???I know of 3 stores that sell milk at 99 cents a gallon in my area.
Don’t worry. It’s all going according to the Obama/Soros plan. No fuel, no food, no heat. We’ll all be dead by spring.
They sell it as a loss leader to get people in their stores. Or, more accurately, to keep their customers from going to a competitor that sells it for $.99 instead.
This is far more than just the dairy industry. The US cattle herd is at the lowest levels its been since 1973, the swine herd at the lowest level since they started keeping track.
Some farmers are dipping in to their winter feed supply already because of high feed prices. But that means that come winter, they will have to cut their herds even lower.
Both corn (+60%) and wheat (+45%) are more expensive than this time last year. Oats, a major feed component, is expected to jump with other feed stocks.
And the federal government is sticking to its *increasing* ethanol demands from corn.
Worst of all, what could turn strong food inflation into hyperinflation, is if the current flood into US Treasury bonds and similar instruments burns out. This could cause a “flight to commodities”, in which investors would purchase the physical commodity, driving up the prices strongly by outbidding retailers, *and* limiting the supply available to retailers.
So say you want 5lbs of flour. Overnight the price quintuples, *and* you are limited by the store in how much you can buy.
How do you think it will effect the food industry if flour costs $10/lb?
$20/lb?
We need an energy policy—but not one formulated by communists.
Just noting that we here in Oregon have a lot of feed for sale... Help our farmers out by buying from Oregon.
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