NFDM Again

Here is the OIG on NFDM from last year report:

http://www.usda.gov/oig/webdocs/26901-01-IR.pdf


From the November 2009 Milkweed

Few of dairy’s greatest cynics would think that “improper reporting” of weekly dairy commodity prices to NASS would pop up again … so soon … when the dust (lawsuits) has yet to settle from the previous milk pricing fiasco has yet to settle. In 2006-2007, dairy farmers whose milk was priced by the federal milk order lost untold hundreds of millions of dollars in legitimate milk revenue, because of improperly reported milk powder prices by DairyAmerica – the co-op milk powder cartel.

The NASS milk powder report of October 17, 2009 reported $1.046 per pound for NFDM, on October 24, 2009 NASS reported NFDM price as $1.0345 per pound and on November 6, 2009 the NASS price was $1.0190 per pound.

Dairy Market News (DMN) in the in the November 5, 2009 report said, “Western low/medium heat prices continue to move higher and the market tone is firm.” Additionally, DMN reported NFDM price for the West as MOSTLY: $1.1000 - 1.4000.

DMN’s report on Western prices stated, “U.S. manufacturers' stocks of NDM at the end of September were reported at 121.7 million pounds, 24.6% lower than a year earlier and 14.3% less than August.” How then, can the NASS NDFM price fall unless we are back to the same old shenanigans?

Bingo! DMN reported (report 44) California NFDM price on October 23, 2009 as $.9928 per pound and for the survey of October 30, 2009, the price fell to $.9639 per pound. Additionally DMN states, quite clearly, “Prices for both periods were influenced by
effects of long-term contract sales.” Prices for NFDM reported by California Department of Food and Agriculture are the only NFDM prices which are falling.

DairyAmerica, the “marketing agency in common” for most of the cooperatives producing NFDM list their price on November 6, 2009 as $1.3825per pound.

So, here is a number: 202 456-1111

This is the White House comment line. A real person will answer. "Time to clean up USDA."

No one was compensated last time.