Early next week Fonterra will hold another internet auction for whole milk powder and anhydrous milkfat. The January auction fell slightly which should have meant U.S NFDM prices should not have plunged off the cliff.
Almost 70% of the NFDM is made by two co-ops in California LOL and CDI.
The Capper - Volstead Act exempts co-ops from antitrust enforcement provided certain conditions are met:
CHAPTER 12--ASSOCIATIONS OF AGRICULTURAL PRODUCTS PRODUCERS
Sec. 291. Authorization of associations; powers
Persons engaged in the production of agricultural products as
farmers, planters, ranchmen, dairymen, nut or fruit growers may act
together in associations, corporate or otherwise, with or without
capital stock, in collectively processing, preparing for market,
handling, and marketing in interstate and foreign commerce, such
products of persons so engaged. Such associations may have marketing
agencies in common; and such associations and their members may make the
necessary contracts and agreements to effect such purposes: Provided,
however, That such associations are operated for the mutual benefit of
the members thereof, as such producers, and conform to one or both of
the following requirements:
First. That no member of the association is allowed more than one
vote because of the amount of stock or membership capital he may own
Second. That the association does not pay dividends on stock or
membership capital in excess of 8 per centum per annum.
And in any case to the following:
Third. That the association shall not deal in the products of
nonmembers to an amount greater in value than such as are handled by it
To me, the key phase is "That such associations are operated for the mutual benefit of the members thereof."
Who makes certain of this - obviously, no one. So, an important question remain, what should the criteria be for evaluation of cooperatives?