Dairy Prices Increase, Water Levels Remain Low

As of May 1 farmers will earn eight cents more a gallon for milk according to the California Department of Food and Agriculture.
Prices will then be increased to $1.33 per gallon, which is still lower than the cost to produce the milk in California. Butter, cheese and powdered milk prices will also increase in May, ultimately raising the price paid for milk as well. Analysts expect the demand for cheese to drop though which meals there is still no certain outlook for dairy producers.
While dairy producers struggle with prices, producers across the state are also looking for relief.
Going on the fourth year of drought-conditions, California producers are still dealing with tight water supplies in California.
Although the Sierra snowpack is at 130 percent average, the Department of Water Resources said the state has not recovered from three years of drought. Many storage areas in various reservoirs across the state still sit below average. Hydrologists believe the snow run off will just absorb into the dry ground. Water conservation is necessary by all California citizens.
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