Dairy farmers are being squeezed out of business by other sectors of the food industry demanding a greater share of the consumer's dollar, farmers attending a federal hearing testified Friday.
The current system leaves dairy farmers with little or no profit, several said at a U.S. Department of Justice hearing on antitrust issues in the dairy industry. The hearing attracted hundreds of farmers from around the country to the University of Wisconsin-Madison, and they delivered a unified message: The system that determines the price they receive for their milk is badly broken.
"What we are hearing is a consistent message, which has not always been the case. Dairy producers, large and small, are hurting," Agriculture Secretary Tom Vilsack said at the hearing.
In the past 10 years, the number of U.S. dairy farms has fallen from 111,000 to 65,000, Vilsack said. Some of that has come from farm consolidations, where farmers pool their resources and create bigger, more efficient operations. But much of the loss has come from farmers who have been forced out of business because they could no longer make a profit, especially in the past two years.
"I have a growing concern about rural America" and the nation's food supply, Vilsack said.
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