After record highs in 2014, a sharp drop in milk prices has compelled many north country dairy farms to postpone investments until the market rebounds.
Dairy economists have predicted farmers probably will have to wait nine to 18 months for milk prices to climb out of the rut, according to Jay M. Matteson, Jefferson County agricultural coordinator. Many farms are operating at a loss or barely breaking even because of low prices.
The trend comes after dairy farmers nationwide scrambled to increase production in recent years, Mr. Matteson said, taking advantage of high milk prices. But the laws of supply and demand caught up with farmers this year, as an oversupply of milk caused prices to tumble. Previously strong demand for powdered milk, especially in China, has dropped this year. With less foreign demand, the supply of U.S. milk has grown.
To read the rest of the story, please go to: Watertown Daily Times
