Monday, December 14, 2009
Gaming the System
(click on image to enlarge)
If you go to: http://www.dallasma.com/fd?source=quick&downfile=/webfile/quick/PPD126.pdf
you will find the link for the above image.
Notice the Class III utilization for November in FMMO 126. Within FMMO 126 are two of the largest cheese plants in the country - Southwest Cheese and Dalhart Hilmar. Together, the plants have a capacity of nearly 8 million pounds of milk a day - that's right a day. How can the 23 million pounds for class III be explained?
Then notice the class I % - over 72%. In November of 2006 the amount was 37%. There is more milk produced in FMMO 126 with no appreciable gain in population when compared with 2006.
With a big class I utilization you would think there would be a good mailbox price. Not so. New Mexico producers , for September 2009, received $2.51 under blend price.
FMMO 126 is just one of the more outstanding examples. Probably in most orders, most of the time, there are some shenanigans going on.