PHOENIX—Industry analysts are saying a drop in milk prices and high feed and fuel costs have caused U.S. dairy producers to take large losses and sell off cows.
As reported by FLEXNEWS, industry sources attending the 2009 Cattle Industry Annual Convention & NCBA Trade Show said an abundance of dairy products worldwide and a slowdown in domestic and international sales caused a sharp drop in milk prices in the latter half of 2008. High costs for feed and fuel are also impacting this situation. The drop in sales was largely the result of weak global economies; however, sales to China also slowed as a result of the tainted milk scandal last year.
