Severe drought likely to shake up milk costs

LOVELAND, Colo. – The A&A Dairy Farm in Loveland has been in Greg Koldeway’s family for 80 years. 

He’s never seen anything quite like this.

“Brutual’s been kind of a word for it,” says Koldeway.

Koldeway’s quick to add that the drought of 2012 has not hurt the quality of his cows’ milk, just made it harder to produce. 

“No feed … prices going through the roof,” he says. “Milk prices (are) staying nominal at best.”

One look at the two irrigation ponds that border the dairy farm and you’ll see rings where the water level should be.  Water now has to be trucked in for the 1,200 cows on the property. 

Where once hay used to be bought in Colorado, farmers like Koldeway have to truck in hay from the neighboring states of Wyoming and New Mexico.

 For now, says Koldeway, milk prices are holding steady.  He’s not sure for how much longer.