US dairy farmers stop killing cows, look to boost production as milk prices begin to rebound

By Dinesh Ramde, AP
Wednesday, February 3, 2010

Dairy farmers up production as milk prices rebound

MILWAUKEE — Finally, there’s some good news for the nation’s milk producers.

For most dairy farmers, the price they received for milk last year was less than what it cost to produce it. One dairyman in Skaneateles, N.Y., says he lost $700,000 last year.

But prices appear to be rebounding as U.S. sales improve and the export market recovers.

The rosy outlook has prompted a reversal in farmers’ strategy. Only months ago, they were slaughtering an average of 50,000 dairy cows a week to help reduce a milk glut. Now farmers say they’re trying to maximize production.

One Wisconsin dairy is expanding from 4,000 cows to 8,000 this year. Rosendale Dairy owner Jim Ostrom says it’s because the only way to make money now is to sell as much milk as possible.

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