Friday, November 6, 2009

Dairy Price Stabilization Q&A

Question 5: I was disappointed Mr Furhmann that you don't show more support of the Holstein USA program. When pricing any product its based on supply and demand. You hang your hat on CWT and that was only half a solution. While you retire that many cows, you didn't protect those new animals coming in. I'm interested in protecting those that are alive today. I think the Holstein USA program addresses a part that yours needs to - maybe its not even enough and I don't like a quota either, but something nees to be done.

CWT - short term removal of cows from the herd. Farmers today want to be in it long term. I will say that CWT cannot continue to exist as it is today - with sexed semen and replacement cows, you can't kill cows fast enough so long term its not a good option on a stand alone basis. Our board of directors has chosen not to put all of our support behind Holstein USA - we don't think its a good time to restrict the growth of people's business. I dont know anyone thats gone through an expansion that has any extra cash - We have the infrastructure and I don't think we should do anything

Lucas - I think we can all be alot happier if we can make farmers profitable as they are - you can't just add another ten percent of the market and expect no one to go out of business. Feed dealers, schools in rural areas, theres more affected than just dairy farmers themselves.

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