Dairy farmers finally catching up -
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Published on: 7/14/2004
Last Visited: 7/14/2004
According to Ken McMahon, the chief executive officer at the Ellsworth Co-operative Creamery, Ellsworth, WI, where much of the local milk is shipped, there are many factors that determine the price a farmer gets paid for milk.But why those factors don't seem to reflect what happens at the grocery store is a mystery, he said.
"Farmers just want a fair price," McMahon said."I believe, and grocers won't tell you this, but dairy products - at least in the larger grocery stores - are some of the highest mark up items in the store.It will be interesting to see what happens when the farmer's price goes down."
According to McMahon, who was busy writing milk checks last week, prices have dropped roughly $3 this month, but experts believe the price will stabilize and as the summer heat hits the nation in August production will drop and cause the farmers price to go up again.
"Maybe even higher than May," McMahon said."Who knows what will happen at the grocery stores?"
McMahon said some of the reasons milk prices rise and fall for the farmer include: high fuel and feed costs, less cows being milked, high daily temperatures, a shortfall of growth hormones and the basic elements of supply and demand.