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California Dairy Farmers Ask State for Price Increases.(Knight Ridder/Tribune Business News)

Knight Ridder/Tribune Business News, January, 2001 by Fujii, Reed

Jan. 3--Dairy farmers already struggling under the pressure of low milk prices have asked state agricultural officials to grant price increases to help offset escalating transportation and energy costs.

While prices paid to farmers for their milk are set by state regulation, the Western United Dairymen note that dairy costs are not regulated.

Since this spring, when diesel-fuel prices skyrocketed, farmers have had to pay higher delivery prices to move milk to creameries, as well as for deliveries of hay, grain and other supplies. In addition, in the midst of continuing statewide electrical emergencies, the California Public Utilities Commission is expected Thursday to grant some sort of power-rate increase.

Michael Marsh, chief executive of...

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