Dairy farmers feeling squeezed

Glenn County lost the second highest number of dairy farms in 2009 of any county in California, according to dairy officials.

Merced County lost the most.

Glenn County lost 14 dairies and Merced County lost 29 last year, according to Ron Miller of the California Farm Bureau Federation. Statewide, 109 dairies went out of business.

Tehama County actually gained one dairy, "the only county in the state with a new dairy," Miller said.

Last year, dairy farmers across the state lost about $100 per cow per month, according to Betsy Karle, dairy program coordinator at the Glenn County Cooperative Extension Service.

Many factors have contributed to the downturn, with high feed and fuel costs dominating.

"The farmer receives less than $1 a gallon," Karle said.

Dairy farmers also are faced with a state requirement to improve waste-water management systems. The major issue is backflow prevention.

"Water quality issues have been very significant over the last few years," Karle said. "Dairy farmers are having to consult engineers to finalize their waste management plans, which is expensive."

The California Dairy Quality Assurance Program Web site states, "Central valley dairy producers are facing some of the toughest new environmental water regulation ever."

The deadline for compliance is July 2011.

Even with the loss of some dairies, the industry in Glenn County is strong.

Karle said there are about 19,000 dairy cows in the county and the industry produces the third highest gross revenue, after almonds and rice.

One reason is improved technology and efficiency, that results in higher yields, Karle said.

California is the No. 1 dairy producer in the country. With about 1,800 dairies and statewide, California produces more than 20 percent of the national supply, Karle said.

The state currently is running a surplus of milk, so the loss of dairy farms does not have a big impact on the overall health of the industry, she suggested.

"The state is in a situation of oversupply. We made an effort to get more efficient, but we did too good of a job," Karle said. "Even though the number of farms is decreasing, family farms are larger and have higher production."

Another contributor to the dairy surplus is the recession.

Karle noted that in Glenn County, cheese is the most commonly manufactured dairy product. And, people are not

using as much cheese.

"The recession has affected families in dining out," she said, adding that, for example, when a family cuts out pizza night, it has a significant impact on the cheese industry.

"A lot of cheese is used on pizza," Karle said.

Another factor contributing to dairy surpluses is "the export market for milk collapsed" during the recession, she noted.

These changes have not had much affect on milk prices at the grocery store.

"Milk is a staple in most homes and continues to be very affordable. Price is very rarely reflected in the store," she said.

Whether dairy farmers can continue to operate "is a matter of how long you can hold on with the equity," Karle said.