Dairy Farms in Oneida County forced to cut costs
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By EVAN WHITE
Story Created:
May 6, 2008 at 12:35 PM EST
Story Updated:
May 6, 2008 at 4:44 PM EST
Cornell Cooperative Extension of Oneida County says local farms are starting to cut costs by reducing the number of cows used to produce dairy products.
In recent years, production numbers have declined as has the profitability of the dairy farm industry in Oneida County. Cooperative Extension tells us that dairy production is still the highest grossing part of the agricultural industry.
It accounts for roughly $8 million per year, but production has dropped 5% in the last six years.
The drop off doesn't sound very steep, but some feel that any decline is enough to sour the local industry. Cooperative Extension says the price of milk has been relatively steady recently, but with fuel costs and market demands faced by dairy farmers, the outlook remains grim.
Experts say that unlike vegetable farmers, who can pass costs along to consumers hoping to keep business, must play by different rules.
"The dairy farmer gets their check in the mail a month after they have shipped the milk, and really don't know what they are being paid," said Jeff Miller of Cornell Cooperative Extension.
Miller went on to say that milk prices have dropped about 15% in the last three months which is being attributed to market fluctuation and increased costs to produce and ship dairy products.
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