Home / Business and Economy / Dairy Farmers Squeezed by Soaring Feed Costs
Dairy Farmers Squeezed by Soaring Feed Costs
5 Jan
Summary
- Feed inflation is the primary stressor for dairy farmers.
- Milk prices do not immediately rise to match feed costs.
- Farmers need predictable feed, veterinary support, and quality-based procurement.
Feed inflation presents the most significant challenge for dairy farmers, with escalating prices for essential commodities like corn and soybean meal. Milk prices often lag behind these rising costs, creating a financial squeeze where farmers receive lower payouts due to reduced fat and SNF levels when they cut back on quality feed.
Government-imposed milk price caps can distort the dairy value chain, pushing financial pressure backward onto processors and farmers. Experts suggest direct support for low-income consumers is more effective than market-wide price controls, which can weaken the supply chain and deter investment. While subsidies offer temporary relief, they do not address fundamental issues.
Farmers require predictable feed availability, robust veterinary support, and procurement systems that consistently reward quality. Investments in fodder production, village-level infrastructure, and price transparency are crucial for long-term stability and protecting farmers from seasonal price volatility and irregular pricing.
