Friday, December 17, 2010
November Milk Production
(click on image to enlarge)
Today USDA released its "Milk Production" report. The report showed, surprise, surprise, that milk production was up in November 2010 by over 3%. The numbers can be argued until the cows come home. The numbers are not a precise measurement. Exact numbers are very difficult to come by.
There are some, many quite a few, who think all we need is supply management and the farm milk price will rise magically. First off, if the numbers are not precise, how can the supply be managed?
Perhaps more importantly, there is a genuine need for a small surplus. Milk supply varies day-to-day. But, the consumer expects to find the dairy product on the shelf. To insure the consumer is always supplied requires extra production.
The real problem is not the small "surplus," the real problem is the small surplus is the excuse to undercut dairy farm milk prices.
Essentially, the problem is a moral problem.