Milk Demand Down, Farmers Killing Cows

MESA - Low milk prices are putting Arizona dairy farmers, and farmers across the nation, in a bad position.

Growing demand in developing countries drove milk prices down when times were good, and dairy farmers expanded to meet the need.

But the global recession has hurt exports and left farmers with too much milk. Adding to the problem, milk processors cut the price they are willing to pay farmers for their milk.

This has forced several dairies, like the Boyle Dairy in east Mesa, to reduce their herds. These farms have had to send cattle to slaughter -- citing that the only way to up demand is to reduce supply.

"We've had to reduce our herd size, we had to lay people off, which we didn't want to do, but it's an unfortunate aspect of the economy… It was a necessity to keep operating," says farmer James Doyle.

The Boyle Dairy hopes to rehire all of its employees when the economy turns around.