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The latest California NFDM price (September 10, 10) IS $1.0851 per pound. California drives NFDM price because, or maybe because, a lot of NFDM is made there.
But, the California NFDM price makes no sense. Why, when all other dairy product prices are rising, should NFDM prices fall? The NFDM made in California is made by cooperatives. Capper-Volstead only exempts co-ops from antitrust action provided the operate for the mutual benefit of members.
State law is the basis for most co-op rules. California's lae begins:http://law.justia.com/california/codes/2009/corp/14550-14551.html
Agricultural Marketing Associations
14550. In order to promote, foster, and encourage the intelligent and orderly marketing of agricultural products through cooperation;to eliminate speculation and waste; to make the distribution of agricultural products between producer and consumer as direct as can be efficiently done; and to stabilize the marketing of agricultural products, this act is passed.
14551. It is here recognized that agriculture is characterized by individual production in contrast to the group or factory system that characterizes other forms of industrial production; and that the ordinary form of corporate organization permits industrial groups to combine for the purpose of group production and the ensuing group marketing; and that the public has an interest in permitting farmers
to bring their industry to the high degree of efficiency and merchandising skill evidenced in the manufacturing industries; and that the public interest urgently needs to prevent the migration from the farm to the city in order to keep up farm production and to preserve the agricultural supply of the nation; and that the public
interest demands that the farmer be encouraged to attain a superior and more direct system of marketing in the substitution of merchandising for the blind, unscientific, and speculative selling of crops.
Someone must have oversight of cooperatives in California.
Within the Federal Orders, the task of oversight is the responsibility of one person:
William Newell, Branch Chief
Some might want to know what exactly he does is his oversight role? Would there be as many dairy lawsuits if actual oversight had been conducted?