Sunday, September 13, 2009

Sale Canceled

Last week, California Dairies, Inc canceled their sale of 1,237,947 pounds of NFDM to the CCC. The sale from LOL has not as yet been canceled.

While it is tempting to see this as just one more example of a tightening milk supply, there could not have been much new information regarding milk supply in the time when the sale was first made and the sale canceled.

Maybe it is just as well to accept we have entered a new economic dimension ¬ the twilight zone.


  1. John pointed out at the time of the sale of this NFDM was $.05 below the market level. Thus, this sale helped to keep the NASS average for powder lower than it should have been.

    With the canceling of this sale, California Dairies, Inc effectively helped to lower the NASS NFDM price with a product that DID NOT EXIST!!

    I have always thought the processors were doing this behind our backs. I guess they have decided they can now get away with just about anything they want since USDA is not going to call them on this. (WAS THERE REALLY AN INCREASE OF 80 MILLION POUNDS OF CHEESE IN COLD STORAGE?)

    Steve Barton

  2. Exactly what I've ben saying right along. We need real data not guesses extropolated from last months guesses and surveys. Auditing would be a good way to accomplish this. I said a couple weeks ago on dairy today blog that we have rules and regulations that have never been enforced. With no enforcement comes no repercussions therefore no reason to follow them. One of the problems we have is the ones who are supposed to be overseeing are basically looking the other way. DWCovert