Californian milk lake grows

Press, 7 February 1986, Page 16

Californian milk lake grows

From

JOHN HUTCHISON

I in San Francisco

New Zealand’s dairy farmers can take no comfort from the trend in United States milk production as reflected in California’s performance. American milk surpluses deny the United States market to any significant quantities of New Zealand milk products other than casein, and the statistics on California’s 1985 dairy output offer no relief.

In the face of the 1985 attempt by the federal Government to cut back surpluses of milk products, California’s dairy farmers are expected to show a 5 per cent increase in production when the figures for last year are com-

pleted. In September California played a major part in the milk flood in which American cows gave a record amount of 5.5 million kilograms. The state in some years leads the nation in production per cow, and it is usually only second to Wisconsin in total milk production. California’s milk producers largely ignored the so-called “dairy diversion programme” by which the Reagan Administration tried to persuade dairy farmers to reduce their herds. A torrent of milk continues to flow into Government stores in the form of cheese, dry milk, and butter, which are expected to increase

the national surplus by more than seven billion kilograms this year.

An anomaly of Californian dairying is that it produces far more milk than it can consume yet makes only 20 per cent of the cheese eaten in the state, which has the nation’s highest per capita cheese consumption.

A group of investors, including a Danish firm, has built what is called the world’s largest cheese plant in southern California and this will start production soon. It will use about a million litres of milk daily in a factory covering more than six hectares. An automated process will use about 5 per cent of the state’s milk.

Another large plant is said to be planned for central California.

Even these plants will make only small ripples on the sea of milk. In 1985 California’s dairy farms produced well over twice as much fluid milk as the state needed. One Californian dairy farmer has come forward with a new suggestion to reduce the oversupply that plagues the industry. He proposes that the producers assess themselves to build a fund to buy entire dairy herds and remove them from production, the seller being forbidden to resume dairying for three years. The idea is said to be receiving serious consideration.