Cattle Futures Drop 5 percent in the East Bay

Another California exodus: Dairy cows leave for greener pastures in Texas, Arizona as farms squeezed by trade turmoil The first of thousands to move from California to avoid bankruptcy is a herd of dairy…

Cattle Futures Drop 5 percent in the East Bay

Another California exodus: Dairy cows leave for greener pastures in Texas, Arizona as farms squeezed by trade turmoil

The first of thousands to move from California to avoid bankruptcy is a herd of dairy cows.

The heifer calves have been taken in to a cattle feedlot west of Fresno near Interstate 5. They’ll be fattened up as part of a trade with Arizona in which they’ll be shipped fresh milk to the Arizona market — to be fed to the cows later on.

“Our goal is to get about 3,000 pounds (1,320 kilograms) fresh milk a day,” said John Hirschberg, a dairy manager at a dairy with 900 cows in a nearby town. “We’re hoping that will be well-tasted, fresh, not milked for 24 hours.”

A herd of 800,000 cows is in jeopardy, the world’s largest dairy business warns. Cattle futures on Chicago Board of Trade dipped more than 5 percent Friday and have dropped more than 5 percent since late Thursday.

The drop in cattle futures is significant because it is the first time that investors are cutting their risk with futures and options trading.

As cows are packed and shipped to California, there is a growing sense of panic in the East Bay’s dairy industry.

“California and all of what we do is based on the assumption that the cows in California are gonna be here,” said Hirschberg.

A herd of dairy cows takes a break and takes a final swig of water in a feedlot in Redding, California. The cows, once milked, are then trucked to an Arizona feedlot where they are fed fresh milk.

A herd of 800,000 cows is in jeopardy, the world’s largest dairy business warns. Cattle futures on Chicago Board of Trade dipped more than 5 percent Friday and have dropped more than 5 percent since late Thursday.

“We expect our business to be very, very difficult to weather,” said a dairy farmer in a county north of Fresno. “When the cows go, everyone’s business is going.”

Dairy cows can range from the size of a few hundred pounds to a

Leave a Comment