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Today, Fonterra held another internet auction, the 38th. Prices were generally up with Whole Milk Powder up significantly, see above. Anhydrous Milk Fat was down but, not much.
On the CME butter, which is still short, is falling in price. The same outfit, Dairygold, which seemed to run butter up to $2.10 per pound is now dropping the price with offers. Rational, maybe, but not transparent.
The looming world food shortage is all over the news. I just wonder how much of the increase in the price will end up in the farmers' pockets.
ReplyDeleteI don't think a fair share! The corporations in the middle and end of the food supply chain will rake in even greater percentages than they already are!
Steve
Margin compression is killing the corporations. Prices are being forced onto the consumer. Right now the bulk of inflation pressure is exported to other currencies pegged to ours (Egypt/china). I can't wait until that story happens here. When I don't know... there is no doubt it has to happen.
ReplyDeleteWill the dairyman benefit.... Nope! I'm sure they will find a way to sell 5 blocks of cheese on the exchange at a massive discount to the free market price, cutting us dairyman off at the knees.
DAVE
I'm sure we all expect the usual suspects to arise very soon to the realization that farmers are likely to get a fair shake for February if something is'nt done soon. Retail is the current winner, but I have little sympathy for the processor corporations.
ReplyDelete