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  1. #11
    Senior Member PERCY is on a distinguished road
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    Mornin', DR; You do have competition for your product in the MidWest, but nobody wants to pay you a penny more than they have to, right? With fewer LARGER purchasers all the time, it is easier for them to manipulate the market price. Eventually, after we eat enuf of our momma cows, there MAY be a real demand for a finite product. Remember, our product is PERISHABLE, and Sargento knows that, too. You can park Toyotas on the dock forever, and shut the factory down for months...no problem. Our cows???

  2. #12
    Moderator drdiederich is on a distinguished road drdiederich's Avatar
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    I hear ya percy, but you can shut down a dairy just as well as any other plant... but you don't for the same reason other companies don't... it costs more to idle it than not. The number of purchasers doesn't worry me because I still have plenty and will for quite a long time as the numbers aren't decreasing. With the government involved in pricing all you can be sure of is that pricing will be done to expedite political gains of those that wright the policy. The bigger issue we face is what you mention, the perishable nature of our product... but then again are today's styles and wants and desires not the same thing? Very few companies have a nonperishable product as no one wants last years' big hit or styles or function... except the amish who seem quite content with 100 year old stuff, but that is a niche market.
    DiederichFarm
    "You are only as good as your next success, not your last" Sir Jock Stirrup

  3. #13
    Senior Member PERCY is on a distinguished road
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    It puzzles me that no one wants the Gov't sticking their nose in MY business, but these same folks LOVE ethanol mandates, crop insurance subsidities, and MILC money. I personally think 09 was the worse of the worst, but many dairymen think RIGHT NOW is. Shutting down a cheese plant can happen overnite, even in Sconni, and that means McDonalds gets your cows. At least they want them.

  4. #14
    Moderator drdiederich is on a distinguished road drdiederich's Avatar
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    Quote Originally Posted by PERCY View Post
    It puzzles me that no one wants the Gov't sticking their nose in MY business, but these same folks LOVE ethanol mandates, crop insurance subsidities, and MILC money. I personally think 09 was the worse of the worst, but many dairymen think RIGHT NOW is. Shutting down a cheese plant can happen overnite, even in Sconni, and that means McDonalds gets your cows. At least they want them.
    09 was rough, but I won't complain... just like I don't about prices now... It is funny how inconsistent most people are about what they do and don't want government to do... I suppose everyone wants the best of both worlds and they are always surprised that they can't get it.
    DiederichFarm
    "You are only as good as your next success, not your last" Sir Jock Stirrup

  5. #15
    Senior Member dairyfarmmn is on a distinguished road
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    Dr: I have no problem going from 4 classes to 2. BUT, getting rid of the FMMO's might not be a good thing. The one thing they do is provide a minimum that must be paid in each order. Now your thinking WTF dman, getting paid the minimum is not a good thing, right? Well, let's say you ship processor "A". Well cheese company "A" has plenty of cheese and plenty of milk, so they decide to pay $3/cwt UNDER what other processors are paying. Or they decide to just quit picking up your milk? So you think no problem, I'll just go to processor "B" or "c" or whatever because we have "competiton" here. Right? WHO is to say that the other processors will WANT your milk? That said, I do believe the FMMO's do need to be redone/restructured.

    As for plants being shut down, that will not happen. Think of the cost of the unemployment claims that will be filed to the coop. How many GOOD workers will be lost to other jobs? In the NE there is a huge demand for milk for greek yogurt. BUT the yogurt plants don't want to pay what the milk is worth. So the coops are sending the milk to balancing plants, for less money than what the yogurt plants would pay, because they don't want to shut down the balancing plants........because of what it would cost to shut them down and to restart them.

  6. #16
    Senior Member PERCY is on a distinguished road
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    So DF, the plants won't shut down? Why wouldn't Cali. and Wash. coops just build another plant, and process milk til the cows come home? The yoghurt people will not pay more for east coast milk, cuz they're building plants in IDAHO!!! [remember, we give them a make allowance]. After every price slump, comes a price bump, and then another slump; look what $20cwt last year did to todays price. None of the processors made money on the high prices, so co-ops and independents alike WANT cheaper milk! They only care about YOU when they are scared that they'll run out of milk. With a few BIG dairies producing so much, all of us little PIA's will be excused , to go our way down memory lane.

  7. #17
    Moderator drdiederich is on a distinguished road drdiederich's Avatar
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    I don't believe the federal orders protect anything...but inefficiency... Why subsidize production where it is less efficient, like the SE?

    Assuring a equal minimum price is useless if its below COP.... Assigning a minimum also takes some of the incentive out paying more too... as they all are told what to pay and can say "we are paying what we are told and are competitive" since every processor is "competitive" in price. The orders are, essentially, a form of socialism to try and produce equal opportunity AND outcome.

    Or am I misunderstanding you DF? As I started going I got to thinking that I may not be getting what you are saying. So I understand: you don't want the number of classes of milk, but you still want the pooling/price organizing aspect, based on location, to assure equal pay for one operation v the neighbor for the equivalent milk?

    I could rant for days straight about how terrible make allowances are for our industry and how they have shackled us down and limited our potential markets...
    DiederichFarm
    "You are only as good as your next success, not your last" Sir Jock Stirrup

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