Increase in Milk Prices in 2014, But Expect a Drop in 2015, Part 2
Friday, January 23rd, 2015 -- 11:32 AM
-In 2014, farmers saw record setting milk prices, but experts say farmers should get ready for a swift decline in 2015.Ken Heiman, of Nasonville Dairy in Marshfield, explained what 2015 may look like for farmers.
Ken said, "What we're seeing for 2015 is we're definitely going to see it come down. The thing that's really disheartening is the fact that it really doesn't have to go down as dramatically as the Chicago Mercantile can force it down."
"Almost all of the cheese plants in this area and most of the cheese plants in the country are based on what ever happens in the Chicago Mercantile and when it happens, that sale down there represents less then 1/10 of 1% of all the cheese produce in this country. And yet it dictates what's going to happen to the 99 and 9/10 of the other product."
"So, it's a very fickle situation. It can be controlled very simply by very few people and when you have volatility down there, the people on the exchange make money. Without volatility, they don't make money. I don't think anybody really realizes how many lives they're playing with and how much it means to everybody out here."
Due to over saturation and poor world markets, experts are expecting a drop in 2015 prices.
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