a broad discussion of dairy covering a wide range of issues
I wish Mr. Genske luck, but I don't think we will ever see that happen.
If more DFA members would grow a set and start asking the same questions maybe the uppity ups would get the message.Thank You Mr. Genske for your time and outspoken leadership. Question everything, trust no one.DWCovert
One of the sticking points with cost of production relative to producer pay prices is what's referred to economies of scale, in that a small farmer may have a higher cost of production relative to a farmer with several thousand head. So if we raise price to reflect my $4.00 per hundred cost of production does the large farmer (with $2.00 cost of production) then reap a windfall?Everyone in the industry knows price discovery must be addressed, but I don’t think a cost of production on the producer (or manufacturing side for that matter) is appropriate because it assumes all businesses have similar costs and efficiency levels.
The ship is sinking here folks. So instead of fixing the hole (which we have a limited amount of time to do) we are arguing about how to fix the hole. Cost of production has proven to build a health rural economy in the past but in the future it is no good because some may win more than others. Welcome to America that's how it works normally but today ALL dairy farmers are loosing. Guess who is winning? We need to wake up NOW and fix the ship!
Amen Bryan- we have to quit the in-fighting, big vs. small!! In actuality its probably not much different. I lwould rather stay alive instead of worrying someone might make a little more than me. If I could "make" anything right now I would be happy- current system is broken. I don't care if someone makes a percieved windfall, I can't survive much longer!!
This firm is very active in the dairy community here in California and elsewhere and has great empathy toward the farmers, many of whom they represent.If the suicides of some farmers didn't garner any attention from this government or the big coops, then I find it hard to believe that this letter campaign would do much better. DFA is spending a lot of farmers money defending itself from farmer lawsuits, and the government has a blind eye. I also believe Mr Genske spoke up to Vilsack when he was in Modesto last year giving lip service to dairymen. It doesn't appear as though anyone is watching what controls the milk pricing in Chicago now or ever, or the california powder fiascos of the last couple of months. Unless the pricing system is fixed NOW the farmers who managed to survive 2009 are in great peril.