[calex59]

But despite decades of being largely exempt from free market forces, farmers have not been protected by governments from the global financial crisis that caused demand to crash.

This paragraph should tell the idiots all they need to know about this situation. "Protect them from the free market?". That is the whole trouble, you can't have a government run market locally and expect to compete competitively against a free world market(at least part of it is free). Evidently some one is able to produce milk and sell it at about half the price these guys can. If they would get the government out of their business they would fare a lot better.

[1010RD]

Saw a great bumper sticker the other day: Sure you can trust the government, just ask any indian.

[agere_contra]

Evidently some one is able to produce milk and sell it at about half the price these guys can

Doubtless thats true, but I don't think its the problem here. It's not like China could export milk across the world and have it stay fresh :0)

Supply is greater than it should be because supply is subsidised. Demand is - I guess - temporarily reduced due to the credit crunch.

These milk farmers are wards of Government and (to that extent) they don't live in the real world. They are used to sucking off the Government teat (no pun intended) and so of course Government is their first recourse in time of trouble.