UTICA, N.Y. (AP) - Despite a recent upturn in milk prices after they hit rock-bottom a year ago, New York state dairy farmers say they’re still losing money.
The president of Oneida County's farm bureau warned that 1 of every 10 dairy farms in the state could fail in the next six months if something isn't done.
"The farmers are a little encouraged by the price coming up over last year, but they're still operating in the red," Farm Bureau President Ben Simons told the Observer-Dispatch newspaper.
In April, state dairy farmers were getting $14.36 for every hundred pounds of milk, or about $1.23 per gallon, according to the state Department of Agriculture & Markets. That is less than what it costs most farms to produce the milk. The U.S. Department of Agriculture estimates operating costs for New York farms to be about $15.98 per hundred pounds.
Do the math, and it's easy to see why the state's farms - most of which are family owned and have an average of 113 cows - are struggling.
Compounding the problem, many have yet to recover from a terrible 2009, when the price of unprocessed milk plummeted to $11.33 per hundredweight.
Some farmers have had enough.
Dave Fitch, of West Winfield, has been campaigning for a strike in which farmers would dump milk rather than sell it until federal regulators increase prices.
"If every farmer in this country dumped their milk for three days, the shelves would be empty, and we'd get somewhere with
immediate action," he said.
About 70 New York farms have agreed to participate so far, he said.
Federal authorities are considering changes in milk price regulation, but that bill isn't expected until 2012.
State officials acknowledge that dairy farms are going through some tough times.
"Farmers are still operating at a loss," said Jessica Ziehm, a spokeswoman for the agriculture department. She said it was "a very difficult situation for the dairy industry in New York State."
Agriculture officials in Vermont have warned of a crisis, too. The Vermont Agency of Agriculture estimated in April that as many as 200 farms there, oar about 20 percent of the state's total, could close this year.
