Dairy Businesses Struggle

Dairy Producers across the nation are struggling and that effects more than just the farm andamp lt a href andamp quot http www kxnet com t sarah-gustinandamp quot class andamp quot kxInlineLinkandamp quot andamp gt Sarah Gustinandamp lt aandamp gt reports andamp quot A struggling dairy industry is having a ripple of effects Gaylen Lennick andamp lt a href andamp quot http www kxnet com t new-salem-ndandamp quot class andamp quot kxInlineLinkandamp quot andamp gt New Salemandamp lt aandamp gt Elevator Manager andamp quot We are still staying busy but you can really tell not as busy as we used to be This used to be really really busy andamp quot Gaylen Lennick says the New Salem elevator went from a dairy store to a grain elevator Since 2000 Lennick estimates the number of dairy customers walking in the doors has dropped by about 70 percent Gaylen Lennick New Salem Elevator Manager andamp quot We used to do alot more mixing for dairy farms and since all the dairy fams have been choked out that took away our business Now the bigger guys get it directly delivered from andamp lt a href andamp quot http www kxnet com t dickinson-ndandamp quot class andamp quot kxInlineLinkandamp quot andamp gt Dickinsonandamp lt aandamp gt they run it through here but we don t have to do any work So it has really cut down here They are all looking for cheaper ways to make ends meet Lennick says they used deliver 8 to 10 loads of feed a day He says now they are lucky to deliver that many in a month And this grain elevator isn t the only business feeling the pinch For 27 years Mastel s Dairy Supply in andamp lt a href andamp quot http www kxnet com t mandan-ndandamp quot class andamp quot kxInlineLinkandamp quot andamp gt Mandanandamp lt aandamp gt has been helping dairy producers in our area build and maintain their operations But when your customers are burning up equity to keep a float they don t have much extra cash to spend Terry Mastel Mastel s Dairy Supply andamp quot It s the added things additions that people are not adding to They are still consuming the things they need sanitation products to wash their system The main drop is there is not expansion We are not putting in new systems and that is alot of it andamp quot Mastel says they haven t sold many new bulk tanks or stalls He says they ve even picked up additional projects to help pay the bills Terry Mastel Mastel s Dairy Supply andamp quot Couple things that we have done in the past few winters we have gone to andamp lt a href andamp quot http www kxnet com t south-dakotaandamp quot class andamp quot kxInlineLinkandamp quot andamp gt South Dakotaandamp lt aandamp gt nad helped on some facilities when it has to do with stainless pipelines and so on So we have done some of that we have done some work with residential plastic vinel fencing so we have diversified that way And then we are also doing bagging type equipment where farmers put their feed into a bag And there again that is quite beneficial during tough economic times andamp quot Mastel says he believes we are on a low rollercoaster ride right now Both Lennick and Mastel hope their customers can hang on and ride through this so that business can get back to normal Reporting for KX news I am Sarah Gustin andamp quot Some reports show milk prices probably won t show any sign of relief until 2010