Price of Beef and Dairy Goods rise as Midwest Drought leaves less Corn for Food and Ethanol

Posted by PITHOCRATES - September 30th, 2012

Week in Review

The Midwest drought has reduced corn yields.  Greatly raising the price of corn.  Good for famers who have corn to sell.  But not so good for people who buy that corn.  From those who make ethanol.  To those who feed livestock with it.  And the drought also reduced the amount of food available to export to impoverished, hungry nations.  As well as raising food prices in U.S. grocery stores.  From beef to eggs to milk to cheese.  It has hit dairy farms in California especially hard (see Calif dairies going broke due to feed, milk prices by GOSIA WOZNIACKA, Associated Press, posted 9/29/2012 on Yahoo! News).

Across California, the nation’s largest dairy state, dozens of dairy operators large and small have filed for bankruptcy in recent months and many teeter on the edge of insolvency. Others have sold their herds or sent them to slaughter and given up on the business.

Experts say California dairymen face a double whammy: exorbitant feed costs and lower milk prices. The Midwest drought has led to corn and soybean costs increasing by more than 50 percent this summer, stressing dairymen from Wisconsin and Minnesota to Missouri. But in California, milk prices have also lagged behind those in the rest of the nation, exacerbating the crisis.

Not helping those “exorbitant feed costs” is the ethanol mandate that requires us to burn some of this reduced food crop in our cars as fuel.  Which the government has refused to waive.  Despite fervent requests from those who have to cull their herds because they can’t afford to feed them.  But environmentalism wins out over people.  And cows.  More people go hungry because of the cost of food.  And dairy farmers send their cows to slaughter because they can’t afford to feed them.

Save the planet.  Kill the people.  And cows.  Especially when you have to please your environmentalist base when going into the 2012 elections.

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