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Milking Cow is now a Biggest problem to US Govt

Everyone loves milking a cash cow, especially politicians. But the story here is very different. Fed is desperate to avoid any kind of deflation be it Milk industry. The slowing demand of milk and milk product is bringing milk prices down and in turn making it tough for dairy farms to survive. Unlike automobile industry, they can't turn cows on and off. They have to milk cows, which results in surplus of milk in market and driving down the prices.

Federal government is planning on option to give incentives to farmers and dairy owners to 'retire' cows to bring down the milk production and to make price climb again. But this could result in downfall of meat industry; more cows are slaughtered more is the meat supply which in turn bring down the meat prices for consumer. It's lose-lose situation for federal government.

By the way, if milk production is down, pr ices will go up again, the dairy owner/farmer will try to 'milk the situation' and surplus milk will flood the market which eventually bring down the prices again!!

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