(click on images to enlarge)
We really know nothing about the amounts the individual players made in the shenanigans DFA and associate made in 2004, manipulating the CME. We do know that DFA claimed to have helped dairy farmers.
Dairy farmers receive a blend price based on utilization. Actually, it is the blend priced based on "pooled" utilization in the Federal Orders. As can be seen in the above table from Federal Order One,the class three (cheese) milk was not pooled - which is also known as depooling.
However, the CME is also used to set wholesale prices and ultimately, retail prices. As can be seen from the above graph, the American public were the big losers.
Farmers should ask USDA how much longer they will cooperate, by way of the farm milk pricing formulas, with the plunder?
Perhaps it is time for consumer groups to ask the same question.
This has to be a joke, especially this part:
ReplyDelete"We are passionate about the farmer-owners we work for"
found here: http://www.dfamilk.coop/our-values
and this:
"DFA is a milk marketing cooperative and dairy foods processor dedicated to delivering value to members through secure markets, competitive pricing and increasing value throughout the entire dairy chain."
found here:
http://www.dfamilk.coop/our-values/our-mission
If, because of the way they are structured, DFA does not have to share profits from other ventures with the farmers, how then, is what they do LEGAL?
ReplyDeleteHow can they use equity money from the farmers to operate legally if they fail repeatedly to share ALL profits with the farmer?
How can they claim the equity as an asset? It is money that is to be returned to the farmer when he/she stops farming (which may be quite a few of us SOON). Are they not expecting to pay it back at some point and time? Maybe not.
These numbers should really tick off DFA producers. The depool during those months is so obvious and huge it can't be missed. Where is all that money?
ReplyDeleteIf you look at the years totals preceding 2004 and from 2004 onward it looks like depooling became a popular sport.
ReplyDelete2000 through 2003 total is almost 2 billion lbs higher per year than all the following years so maybe the above post is right and depooling became popular with them. If not then where did all that milk go from 2004 on?
ReplyDelete