Dairymen across the state are struggling to stay afloat, and it won't get any better without paying dairies market value for whey.

When the California Department of Food and Agriculture set a temporary price hike until the end of the year, it gave producers 12.5 cents more, but didn't solve the main issue, said Michael Marsh, the CEO of Western United Dairymen.

A big discrepancy exists in what the state dairies get paid for whey compared to other states where the farmers get paid according to federal whey standards, Marsh said.

For example, the price of whey under federal guidelines is $2.20, versus the state of California, which gives farmers nearly 69 cents per 100 pounds of milk.

Marsh said the temporary price hike may be a small relief to farmers, but it really hurts the consumers, who, he expects, will have to pay more for products such as milk, ice cream and sour cream -- as soon as Monday.

AB31 addresses the whey price structure, said Marsh, adding that he hopes legislators pass a resolution soon.

Last year alone, 105 dairies closed -- most of them located in the northern San Joaquin Valley.


Ray Souza is among those struggling to keep his doors open. He's seen three families lose their dairies in the past couple of years.

Marsh said California dairies are the lowest-paid in the country, even though it's the top agricultural industry.

Marsh said when dairies close, it spills over into the economy, affecting jobs, other businesses related to the dairy industry and economic development in local communities.

Souza said he's maintaining status quo, meaning, no big changes, and cutting losses where he can early on.

He said if one of his dairy cows is not producing 60 pounds of milk a day, it has to be sold.