Economy

July 18, 2011

With milk prices below production costs, California dairies close

Milk is touted as a healthy food that promotes strong bones, but the California dairy industry itself has been weakened by the recession, ethanol subsidies and high feed prices. Like a calf with wobbly legs, dairy farming is struggling to rise above tough times with lean profit margins. In three years, the state lost 250 independent dairies, many of them family-operated for generations.

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