Monday, August 20, 2012

What's the BIG Deal?

What's the BIG deal?  "The news media keeps talking about the worst drought in 50 years, but it's green and lush here in my part of the world." This is the attitude many people may have in my area of Minnesota. We have not seen the severe drought conditions like many parts of the United States are experiencing. However we, as consumers, need to remember that our food doesn't just come from the "farm next door." Don't be deceived by the view outside your window. This drought will affect everyone. 

Dairy farmers are experiencing economic disaster. Based on a report by the USDA's National Agriculture Statistics Service, dairy farmers lost 24 cents on every gallon of milk produced in May and June of this year. This is due to the severe drought and sky-rocketing feed and fuel costs.

What about the consumer? The effects of the 2012 drought will likely result in a significant increase in food prices for a period of time. Well, doesn't that mean more money for the farmer when the grocery prices go up? Dairy farmers do not set the price for their milk, and are therefore unable to pass along their expenses. Milk prices are set by the federal government once each month. Retail prices in your grocery store are determined by supply and demand.

Despite these conditions and challenges, we dairy farmers will continue to work hard and are dedicated to providing you with the best quality, nutritious products available! Now THAT'S a BIG deal!

Check out Midwest Dairy Association

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