Post deregulation of the Dairy industry in Australia

jay gee jgj23 at mindspring.com
Fri Apr 5 10:33:27 EST 2002


sunnfarm at netscape.net wrote:

> Dairy Facts...The USA produces more milk than we can consume...
> USA Dairy farmers last year received roughly $3 per hundred weight
> less for milk than it costs to produce...and in the name of free trade
> the USA imports 25% of our milk and who is the largest exporter of
> milk to the USA?...Australia.

So, can someone please explain to me why all these farmers
keep producing more milk instead of turning some of those
dairy cows into steaks and watching their revenues rise?

After all, fewer cows to feed, house and milk means lower
operating expenses.  Why most business would jump at the
chance to lower expenses and raise revenues at the same
time they reduced their workload.

Or are all the farmers so overburdened with debt from acquiring
the latest "higher productivity" milking machinery that they can't
afford to do anything the local banker would perceive as
counterproductive?

Someone please enlighten me.

Jay Gee
not a farmer -- but interested in farming






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