Saturday, April 23, 2011
Gaming the System
(click on images to enlarge)
Having full supply contracts with major processors means all milk to those processors has to go through the holder of the contract.
If you look at the map above and if you ship milk in FMMO I you will not find any data as to where your milk was pooled. But, it is obvious whoever holds the keys to pooling hold the keys to the treasure chest. Since Federal Order reform of 2000, "paper pooling" has been allowed. That is the milk does not have to regularly go to a plant to be pooled on a plant. The truck driver knows where the milk goes but, who knows on what plant the milk was pooled.
If you look at the list above you will se that in June 2010 three farms from New Mexico were "pooled" on the federal order based in Atlanta, Georgia. Do those farmers benefit from that pooling. If you look at the "mailbox" price, it is very doubtful that the actual farms saw actual benefits to the pooling games.
It is all nasty business with "official" approval.