Friday, August 28, 2009


Big questions remain.

As mentioned in the last post milk is drying up in the West. Milk is also drying up in the East. Nevertheless, NFDM was sold to the CCC not once but, twice this week.
Who sold the powder? According to the USDA,California Dairies, Inc., a co-op sold the most, a total of 1,287,879 pounds early in the week.

Then LOL, a co-op, sold 704,962 pounds later in the week.

How many reasons can there be for selling NFDM –now- to the CCC? I can only think of two. One is they are desperate for cash, in which case there is cause for worry. The second reason is the two co-ops want to drive down the price of farm milk – in which case there is cause to worry.


  1. There's a saying that "time will make more converts than reason". In the case of dairy farmers, I'm wondering how much time it will take? Perhaps the plight of the dairy industry mirrors the troubles of the country. As we sell our beans, distillers, and even hay to overseas farmers to help them grow their animal industries, across our country farmers struggle to maintain the nations breeding herds and flocks. Maybe, just maybe, it would be better to feed our crops to animals in this country and export the products produced just one step up the food chain? Think about all the extra money and jobs created by this one simple idea. Yes, I know it's not that simple - but I think it's still the direction we should be taking.
    You want the milk prices to go up tomorrow? Tell the folks that work for you in Congress to put large tariffs on imported milk products, same thing with beef and other red meat and even farmed sea-food products, like catfish, shrimp and clams. Proccessed foods should be heavily scrutinized, with duties attached that are even higher than those of raw products. We should be producing our own food. If Congress doesn't listen, we'll need to elect someone that will. We've been driving down this same road for quite some time, we're going about 140mph, we see the brick wall and it's coming up fast - don't you think we should at least slow down?
    We import enough other things to off-set the small amount of duties needed to secure a plentiful food supply for our children. We need to take a lesson from other countries (like Russia) and do what's best for us - if someone else doesn't like it, well that's just too bad.
    Jeff Suehring

  2. I'm curious. If NASS is at $0.88 and sales to CCC are at $0.92 and NASS has been creeping up from roughly $0.835 to the present, then how is selling to CCC trying to drive down the price?

  3. Brokers tend to look at the Central/East price as "market" price. NASS reporting is simply lagging reality.