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Industry News

Read coverage of current events and news affecting dairy producers and the industry.

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How the dairy industry could benefit from a price stabilization plan

“The volatility in dairy product prices and dairy producer milk prices is extremely difficult for dairy producers, milk processors and end users of milk and dairy products to manage,” the Holstein Association USA, Inc. (HAUSA) says in their Dairy Price Stabilization Program outline.

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Should any growth management plan include a market access fee on all of the milk produced or just for the new milk produced? What should that price be?

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This informal survey is the fourth of its type. Many academics, practitioners and trade journals participated in helping put out the word. Finally, special thanks go to each and every one of the dairy producers who took the time to fill out the survey.

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Milk production per cow, according to the NASS Milk Production report released on December 18, for November was 1,679 pounds, up 25 pounds or 1.5 percent from a year earlier.

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After establishing a transportation company this year, I had the opportunity to survey retail prices in a large portion of the central U.S. It started or was prompted by a Toledo, Ohio store offering 1-gallon jugs for $1.75, regardless of fat content.

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January 2009 seems like a decade ago. Milk price averaged a balmy $16.12. Predictions of 2009 losses of $1,000 per cow seemed fanciful. We urged both producers and industry to work together to cushion against an industry-wide decimation, and wondered how farms would cope. Now we know. Unfortunately, the end of this story is far from over and although now we know, we don’t know it all.

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