(click on image to enlarge)
In 1961 John F Kennedy was in office, in spite of the fact that many people thought there would never be a Catholic President. Hope seemed to be in the air and milk prices transmitted efficiently from farm to the public.
In the above graph, I have once again combined the categories of dairy products published by the Bureau of Economic Analysis as "Personal Consumption Expenditures" (PCE). Then I took the "All Milk" price times the farm milk production. The results are a graphic representation of market failing to efficiently transmit price signals.
The difference, in the time period from 1961 through 2008, between farm and consumer value changed by just over 600%.
