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Dairy Farmers Not Seeing Higher Profit Margin from Increased Milk Prices.(Originated from The Press-Enterprise, Riverside, Calif.)
Knight Ridder/Tribune Business News, June, 1996 by Crider, Jeff
SAN JACINTO, Calif.--Jun. 30--For Jack Tuls, the good news is that his dairy is making a profit for the first time in two years.
The bad news is that his profit margin -- 8 cents on each gallon of milk before taxes -- is a third of what it was in the late 1970s.
"Somebody's making money. But it's not the dairy farmer," said Tuls, who cringes at the thought that he now owes his banker more than he did 17 years ago, when he started Tuls & Sons Dairy in San Jacinto.
Dairying is one of Riverside County's biggest businesses, and milk is the most valuable agricultural commodity, accounting for $288.2 million, or more than a fifth of the county's nearly $1.1 billion in agricultural production in 1995.
But even though the past couple of decades have...
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