Monday, February 16, 2009

More capitalist madness

AP

Hundreds of thousands of America's dairy cows are being turned into hamburgers because milk prices have dropped so low that farmers can no longer afford to feed the animals.

Dairy farmers say they have little choice but to sell part of their herds for slaughter because they face a perfect storm of destructive economic forces. At home, feed prices are rising and cash-strapped consumers are eating out less often. Abroad, the global recession has cut into demand for butter and cheese exported from the U.S.

Prices for milk now are about half what it costs farmers to produce the staple, and consumer prices are falling. Unless the market can be bolstered, industry officials project that more than 1.5 million of the nation's 9.3 million milking cows could be slaughtered this year as dairy operators look to cut costs and generate cash.

"This could destroy our dairy infrastructure," said Mike Marsh, CEO of the United Western Dairymen trade association.

I'm sure there's some pithy quote from Marx about what's happening here, but I can't find it at the moment. No matter, there'll be plenty more where this came from.