[jjotto]

http://www.agweb.com/article/low-milk-prices-glutted-market-put-strain-on-dairy-farmers—naa-associated-press/

...An increase in milk production combined with sharply lower exports and declining sales of fresh milk have combined to depress milk prices paid to farmers from a 2014 high of about $28 per hundred pounds — about 9 gallons — to below $18 this spring.

Wood said he’s currently selling milk for less than it costs him to produce it — around $20 per hundred pounds...

[Buckeye McFrog]

Wood said he’s currently selling milk for less than it costs him to produce it — around $20 per hundred pounds...

Then he will stop producing, as presumably he does not want to lose two dollars per hundred pounds. The supplies will diminish, prices will rise, and the problem will take care of itself.

[Early2Rise]

Indeed. So many complain that prices are unstable without intervention, then blame artificial shortages and surpluses on the free market. Remind you all of another price that’s currently much lower than it should be?

Notice how in the agweb article they quote a “part-time USDA economist”

[bgill]

Anyone seen lower prices in the grocery store? I haven’t.

[BfloGuy]

Wood said he’s currently selling milk for less than it costs him to produce it — around $20 per hundred pounds...

Profit is the entrepreneurs' reward for figuring out how to make something for less than customers are willing to pay for it.

If they can't do that, it's a sign they should bail out of the business. I'm nostalgic about the family farm, but I'm not willing to subsidise them.