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New milk sales system needed

Sept. 5, 2013 | 0 comments

August cheese price drops have caused many dairy producers to ask how bad are prices going to get before something is done?

At National Farmers Organization, we are deeply disturbed at the lack of progress on industry issues.

But a couple of decades ago the industry looked different.

Back then, U.S.-owned cooperatives ruled the day. Three dairy processors out of the top four were cooperatives.

Today, the top four processors account for one-third of all sales from the top 50 processors.

Of that top four now, three are privately-owned, and two of those are foreign-owned. And just one of the top four is a farmer-owned co-op. Hoard's Dairyman editors have noted the concern with this trend.

Foreign and private owners have less incentive to pass more money per hundredweight back to you, and all American dairymen. Compare that to dairy farmer-owned cooperative processors, who work on behalf of their member-owners, dairy farmers themselves.

Today, National Farmers strongly promotes a growth management plan that rewards participants with a competitive price.

and we're reaching out to other dairy groups to integrate their ideas with ours to help develop a proposal to help your situation.

No matter what the final program looks like, it should increase competition in the marketplace, and deliver more dollars directly into your pocket.

Perry Garner

Director of Communications

National Farmers

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