by Pops » Mon 19 Jul 2010, 10:43:53
$this->bbcode_second_pass_quote('Pretorian', 'I') remember you were happy with those meat prices you enjoyed so much recently.
I'd be more than happy with a less volatile market, I doubt I made a profit the last 2 years. Beef prices affect Holstein prices some but dairy steers are a by-product of the dairy business so price is probably more influenced by supply than demand.
Calf prices are up because the availability of calves is down because dairymen are selling their herds, in part because of high feed prices (read: corn ethanol) and in part because of volatile milk prices:
$this->bbcode_second_pass_quote('', 'A')nd Joel Greeno, who farms in the Monroe County town of Kenall, attributed the increased fluctuation in dairy prices in recent years almost entirely to the Chicago exchange, which he called a "highly leveraged, thinly traded market with few players."
"It went from fairly stable ups and downs to looking like a heart monitor," Greeno said of prices over the last 60 years. "And it can't look like a heart attack."
Baldwin said she has been taken aback by the "human toll" of the industry's volatility, saying that farmers who've been in the business for generations are having difficulty paying bills or getting credit to expand or even keep their farms.