Wednesday, October 7, 2009

News of the Day

Good news. Prices at the CME continued upward. Blocks are $1.46 per pound and NFDM grade “A” is $1.22 per pound. Whey prices continue to rise, which means the “other solids” price will increase.

In Fonterra’s latest internet whole milk powder auction, today, prices rose 5.7% The average selling price for whole milk powder was $3,022 a metric ton, $1.37 per pound, , up $164 per ton on last month. This latest auction follows a 24% rise in September and a 26% gain in August.


  1. I have been given the daunting task of coming up with numbers to support the concept that we don't need supply management policy. This is for our county Farm Bureau annual meeting. I am strongly against supply management in light of the ease of simply replacing domestic supply with imports, but am having a hard time finding concrete numbers. Would you possibly have any suggestions for good sites? Thanks in advance and sorry to trouble you with this.

  2. Supply management is not a bad thing if we can control imports.. Look at where Canada is today. They were not effected with this latest down turn. Is quota high? Yes. Is it worth more than the farms in Canada? Yes. But remember, we wont have to buy it. It will be earned then a value will be put on it.

  3. threecollie;
    You must be a glutton for punishment:why would you want to take on such a thankless task in such a useless forum?? Supply management is supported by 86% of your fellow dairymen... given the betrayal American Farm Bureau handed U.S. dairymen in the recient Washington hearings why would you waste any time even going to a Farm Bureau meeting?
    Back on the sunny slopes of long ago and far away, when I took my first ag-economics class from Maynard Boyce at S.U.N.Y. Alfred,first thing Ol'Maynard drilled into us dolts and outlaws was "price is that point where supply meets demand" can't control demand;all you can do to command a price is control supply...
    Your argument about domestic production being superceeded by foreign supply overlooks the practical limitations of that supply...given the recient relative strength of the U.S. dollar just about all the available world supply of dairy "crap" was landed on our welcoming the dollar is weakening against foreign currencies; much of what was offered to U.S. processors will be getting "pricy"; patriots that they are, processors will return to domestic production with a will.
    All hands I talk to say we must demand something of substance to the positive must come from the miserable passage U.S. dairymen are making in this crisis. From the government's perspective supply management would liberate it from future dairy crisises and the need for costly futule dairy bailouts.
    There is opportunity here,threecollie; try and get your head out here in the fresh air and sunshine with the rest of us! Nate Wilson

  4. My blood is boiling as I read threecollie's comment! As a dairy farmer, and after talking with almost every other dairy farmer i know (and that is many) most are in favor of a supply management program! If that is the case, why are they trying to drum up numbers not to support it! Address the imports and the supply and then you will still have a job! I sounds to me like those running Farm Bureau need thrown out and someone who realizes where his/her bread and butter come from put there to replace them! Melissa Brumbaugh

  5. I agree with Nate and Melissa; make the same or even less milk and get paid more... it's not a complicated concept and most all around here would agree with it.
    Jeff S