On June 4, 2009 USDA Commodity Credit corporation (CCC) sold just over 1 million pounds of NFDM to Prestige Proteins, 5300 W Atlantic Ave, Delray Beach, Florida for $0.47 per pound – just about half the current world price. The CCC had paid $0.80 per pound plus storage costs of about a quarter cent per pound a month.
This will be converted to casein by Prestige Proteins. Prestige Proteins advertises itself as “Your one stop global source for caseins and caseinates.” Their website says, “We produce Polish skimmed milk powder in ADMI extra and standard grades. Our plant in the United States produces Sodium Caseinate, Calcium Caseinate, and other Caseinates with the functionality that you require. Each product and blend is created to suit your particular needs.
And, if you want to, United States Patent 3911143 covers a process to convert whey and casein to create a substitute for NFDM.
At $0.47 a pound from the CCC there is a lot of room to play around – creativity is encouraged. Keep in mind though, in September 2008, before CDI began selling NFDM to the government, the price was $1.2379 per pound.
You couldn’t really call this capitalism, and you couldn’t call it socialism. A new definition is needed which explains what’s going on.
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I know I quoted Henry Ford once before (miss-spelled his name too - not because I can't spell, but because I don't type as well as I should and need to proof read better).
ReplyDeleteAnyway, "Failure is just the opportunity to begin again, this time more intelligently." Henry Ford
I think most dairy farmers will agree our dairy policies are failures and we would be well off to begin again.
As Mr. Bunting pointed out in his last post our banking system is also a quite problematic. We should all be extremly concerned about the amount of money we've already given the banks for a bail-out and where that money is going.
The Fed is a fairly complicated system - way too complicted to cover here. But, as the government considers giving the Fed more power and authority, keep in mind the words of Baron Meyer Amschel Bauer Rothschild, who said, "Give me control over a nation's currency and I care not who makes it's laws."
Also keep in mind that the Federal Reserve is not a true part of the government and consist basically of, to keep it short, 12 different banks; all owned by large private banks, as far as I know at least 8 of the 12 are owned by foreigners. There is however a large amount of government influence on the Fed through presidential appointments - agian too much to go over here.
On the altitude of the numbers, I whole heartily agree with Mr. Bunting; most do not understand the great amounts of money we are talking about with the bail-outs, where it comes from and where it's going, as it is almost imposible for the average person to imagine.
Okay, sorry I rambled on about that... As far as the dairy pricing; a whole bunch of dairy farmers that don't know what can't be done, need to get together and do what is seemingly impossible. The problems are the easy part, the solutions are the hard part; I'm fearful that for many the solutions are already too late. Our industry will continue to shrink along with other industries like ours (true wealth creators not just money traders) and our children, grandchildren and country will pay the price.
Jeff Suehring