250 Dairy Farms Close in California.

Dairy farms all across California are closing down as milk production quickly becomes less profitable. 

As of 2008, California was home to 1,905 dairy farms, 1.8 million dairy cows, and produced about 5 billion gallons of milk every year. In 2011, the sagging economy and the increasing cost of everything is about to put a major damper on all that.

The cost of operating a dairy in California has practically doubled in the last three years while the price of milk has barely risen. Across the state, over 250 independent dairies have closed down in the last three years. A huge factor in many of the closures is the price of hay. Hay that just recently cost $125 to $150 a barrel now runs $250 to $300 a barrel. Feed prices are over double what they were but retail milk prices only rose 5 to 6 percent. Dairy producers are struggling to turn a profit.

Dairy products are California’s 6th most profitable export commodity but almonds and rice hold the number #1 and #2 spots. Heck, California already produces 75% of the world’s almond supply they should ditch the dairy scheme and become world leader in the almond and rice milk business instead.