Our Dairy Plan
|Industrial Dairy Crisis|
|What is the Dairy Crisis?|
dairy farms are disappearing from the United States
such that some day there will be a shortage of milk. The farms
are disappearing due to the low cost paid to the farmer. The low
milk cost is due to the governemnt price fixing called the Federal milk
order. If imported milk products were limited we would not have
enought milk today.
What is causing this low farm prices?
essentially all milk is
taken to a milk processor for pasteurization then to the
retailer. This system has created a monopoly
system with the price of milk set by the Federal order. The
Federal order price over the years has continued to reduce the
price the farmer received for his milk. Over the past 37 years
the price paid to the farmer has decreased continuously in real
spending power. The
Class III milk price now is 16.76 (1/22/17). In the 1980's the
milk price was about 15. How would any person like to get the same wage
they got 37 years ago. The government has succeeded in keeping the price of milk low for the
consumer but has done so by taking advantage of the farmer.
The milk price in the store would have to go up for the farmer to make a
profitable wage. The government has kept the price of milk low at
a unsustainable price for too long.
What should the price of milk be to the farmer
you take the price
of milk in 1972 ( $6/100 lbs) and scale it by 10 times it would be
$60/100lbs. The 10 times price factor is based on gold and other
commodities price change since 1972. In 1972 the dollars was
un-linked to the price of gold and since that time the value of the
dollars has decreased substantially. If the farmer could get
this price you would see
the family farm return. Today the milk prise for conventional is about
$16.5 and $36 for Organic milk per 100 lbs.
Why the low prices to the farmer
Federal order pricing system
has successed in reducing the family farm dramatically. The
disappearance of the family farm is not because the farmer failed, or
he/she was not a good farmer it is because the Federal order
system put them out of business. The government and dairy processor
want and low price for milk. For the government low milk prices keep
the population happy and for the dairy processors it provide a low cost
to assure the sales and provides low cost for milk product
How can the farmer milk price be fixed:
REPEAL the Federal
Order for milk prices, go to a free market milk pricing
legislation to break up the monopoly of the dairy processors and the
Coop industry. Every state with dairy farmers must have multiple
Co-op or processors for representation.
Allow the Co-op's to
compete for the milk sales against one another and to work to
provide a fair price for their farmers milk.
Enforce anti- price
fixing between Coop and processors.