May 11, 2007 2:01 am US/Eastern
Dairy Bailout Will Mean Higher Milk Prices
by Joe Shortsleeve
BOSTON (WBZ) ―
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Prices for milk and other dairy products may be headed up
Got milk?? It's a staple for most families. And no one wants to pay more for it.
"Unfortunately, we would still have to buy it," one mother said. And I hope it doesn't, but with three boys we'd still be buying milk."
It looks like we'll all be paying more soon. State leaders have announced a bailout plan for local dairy farms that calls for $3.6 million immediately -- and then a long-term stabilization fund which could cut into retailers' profits.
Those costs would most likely then be passed on to you, as much as 30 cents a gallon. And along with higher milk prices, you can also expect to pay more for other dairy products such as cheese and ice cream.
State Sen. Steven Brewer says Massachusetts needs a viable dairy industry.
Without it, "The milk will be imported from great distances," said Brewer (D-Barre). "Therefore it will be not as fresh, that's logical, and it will cost more."
In the 1980's in Massachusetts there were more than 800 dairy farms. Today just 165 remain.
Dairy farmers compare it to the perfect storm. Energy costs have gone up, fuel costs have gone up, grain costs have skyrocketed, but the price of milk, which is heavily regulated by the federal government, simply has not kept pace
"It's been a brutal year," dairy farmer Mark Duffy said. "Personal friends of mine have gone out of business."
Mark Duffy has tended cows in Carlisle for 20 years. He's in line for $20,000. Every little bit will help
"It will give me some extra money to pay my grain bill, which is very high," he said, "And it will give me money to put some crops in the ground."
And it will keep a New England tradition alive, .for at least the time being.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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