Friday, November 6, 2009

Dairy Price Stabilization Q&A

Question 4: With everyone making money except the farmer, the dairy industry is the most crooked business in the US right now. Where I ship my milk, the guy built two cabins up north and he made the mistake of telling someone he made more money last year than he ever made in his life. Why aren't the farmers getting some of these profits?

David F: I hear you loud and clear. I'm not going to defend anyone, but pricing mechanisms in place mean we have to have something in place. No matter what kind of farmer you are, all commodity businesses are at the bottom of the food chain. Being at the bottom is very difficult.

David C: We market milk for our members and the uniqueness of that is to be able to market to a variety of markets. Many industries suffer because consumers are not buying their products. Its very troubling for us as a marketing agency because you lose the market and have someone else fill it - truckloads coming in daily from California and the coast. Its been frustrating for us as we found we had two buyers, which later merged creating less leverage with just one buyer. As an org marketing milk, we've endured losses in our market/milk program because we can't service our members in a way we like to, which has been dictated by the individuals who sell.

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