NM dairies close amid high feed prices

A dramatic increase in the price of hay and corn and low milk prices are putting some New Mexico dairies out of business. Dairy Producers of New Mexico President Luke Woelber tells the Albuquerque Journal that he knows of five dairies in the eastern and southern part of the state that have closed in the face of feed costs that have doubled in the past few years. The higher feed costs combined with higher fuel and transportation costs means that, for the dairies, the cost of producing a gallon of milk is greater than the selling price. And dairies' inability to raise prices in the face of global competition and federal price controls means their higher costs haven't shown up at the grocery store. A ton of hay sold for about $160 in late 2010, said Jerry Hawkes, a professor in New Mexico State University's agricultural economics and agricultural business department. Today, large purchasers of hay, like dairies, pay about $300 a ton. Hawkes said he has heard of the best quality hays selling for up to $350 a ton...more