Dairy prices are too low to meet the cost of doing business, so rather than cut costs, Mike McMahon, owner of EZ Acres farm in Homer, will expand nearly 25 percent.
“It’s a very difficult economic time for dairy and we are entering our fifth year of producing milk at or below cost,” McMahon said Tuesday. “At the same time we took in two junior partners four years ago, so there’s now four owners instead of two here so we need to expand the dairy to accommodate that.”
McMahon said he is building a 15,000-square-foot facility for around $400,000 and adding about 200 more cows to the 800 he already has. He also said that he is likely to hire two more full-time employees and a part-time employee.