|| Print ||
|Wednesday, October 21, 2009|
Oregon dairy farmers have been losing money since the financial crisis drove down milk prices last fall.
Farmers don’t see many options besides continuing to sell at a loss, since cows must be milked regularly and farms can’t cut costs without compromising their health and milk. No one wants to buy dairy cows, and selling cattle for ground beef is a last resort. Most farmers are now relying on credit and savings to stay in business.
A program created and funded by dairy producers offers buyouts to farmers who are ready to retire, but it has raised the price of milk by just $.71 per hundred pounds. The average price paid to Oregon dairy farmers in 2008 was $20.11 per hundred pounds of milk; the average for 2009 to date is $10.94. Most farmers need prices in the $15 range in order to break even.
A few Oregon farmers have gone out of business, says Jim Krahn, executive director of the Oregon Dairy Farmer’s Association. He expects more farmers will close down before prices stabilize at a sustainable level.
“I’ve essentially lost everything that I’ve worked for in the last 20 years,” says Louie Kazemeir of Rickreall Dairy in Polk County, where 1,600 cattle produce 4 million pounds of milk a month. Kazemeir estimates he’s losing between $6,000 and $8,000 a day, totaling $1.2 million so far in 2009.
The good news is that milk prices seem to have turned around; the futures market shows enough of an increase in November’s prices to make some farmers a profit. But even as farmers recover, complex subsidies and pricing formulas ensure that the industry will continue to boom and bust. The answer is more regulation, Kazemeir says.
“We need to get production controls across the country to avoid this again,” he says. Milk prices were low in 2005 but rose to historic highs in 2007, when farmers added cows to cash in. When prices dove back down, some farmers were still paying off the loans they had taken out to add capacity.
U.S. Agriculture Secretary Tom Vilsack said last month that the dairy industry must be restructured to be less volatile. In the meantime, dairy farmers are getting a modest bailout: $290 million in direct payments and $60 million for the government to buy cheese.
Thursday, May 29, 2014
BY JONATHAN FROCHTZWAJG
For Far West Fibers, one of Oregon's largest and oldest mixed-recycling companies, garbage alchemy has long been big business.
Thursday, May 29, 2014
BY COURTNEY SHERWOOD
Business and civic leaders weigh the risks and rewards of going green.
Tuesday, July 08, 2014
BY LINDA BAKER | OB EDITOR
The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment.
Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.
Thursday, July 03, 2014
BY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS
The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.
Thursday, June 26, 2014
Wednesday, July 02, 2014
BY JESSICA RIDGWAY | OB WEB EDITOR
Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.
Thursday, May 29, 2014
BY JON BELL
A new generation of outdoor apparel companies targets the young and the urban.
|The Private 150: Bigger But Leaner|
|The Perfect Food|
|Powerlist: Staffing Firms|
|Taxis Uber Alles?|
|GM profit declines 80%|
|Study: Dogs can feel jealousy|
|Boeing profit surges 52%|
|Apple: iPhone sales jump|
|Comcast profit rises 15%|
|American fast food chains snagged by food safety scandal in China|
|Washington volcanoes receive more scientific scrutiny|
Vigilant enters a New Year with a new president.
How George Fox has become one of Oregon's largest private universities.
Forest Grove sees growth in the burgeoning food and beverage scene.
Geffen Mesher is saddened to announce the passing of long-time shareholder, Tom “Mike” Anderson, who died on July 10, 2014, from liver disease diagnosed after recent heart surgery. He was 55 years old.
Fifteen Lane Powell attorneys have been named 2014 “Oregon Super Lawyers,” and another five attorneys have been named as “Oregon Rising Stars” by Super Lawyers magazine.
From its first-ever member forum, to upcoming Board elections, the Oregon-based, non-profit health organization is focused on letting members control their healthcare destiny.