Dairy Producers Experience One of Their Worst Years

Date: Nov. 19, 1997
Editor: D'Lyn Ford,  (505) 646-6528, dlford@nmsu.edu

LAS CRUCES -- The dairy industry has had its share of ups and downs this year, mostly due to volatile milk prices, said a dairy specialist with New Mexico State University.

"Last fall, we had the highest milk prices ever in this country," said Greg Bethard with NMSU's Cooperative Extension Service. "Then, prices started to drop tremendously late last year and continued until they bottomed out this summer."

From June until August, milk prices were lower than they've been since 1991, Bethard said. Prices dropped about 35 percent from fall 1996 to summer 1997.

"That's a phenomenal drop in income that dairy producers have no control over," he said. "I don't know of anyone going out of business, but it was an extremely tough summer."

The weather also played a hand in dairy farmers' problems, he said. A hot, humid and rainy summer made matters worse.

"Wet, muddy pens translate into cows that aren't very productive and aren't healthy, particularly because of mastitis -- an inflammation of the udder," Bethard said. "Some dairy producers were battling to keep cows healthy in a wet environment. And the humidity caused cows not to eat well and not to produce well."

Although, many dairy producers won't make a profit this year, milk prices have rebounded a little, Bethard said. Milk production also is improving.