DRB":33vi8eej said:Are dairy farmers in other area of the country having as much trouble financially as the farmers in southeast Louisiana? Low milk prices?
dale":2rneo2vf said:dave is right about the cheese market only problem is the way we get paid that won't show up on the milk check for another two months. by that time the market may level off or down turn and we will never see the peak. our whole pricing system is loosely based on the cheese price at the chicago merc. exchange so basically it is the same as the nystock exchange any change in the wind can effect the market. when the gov't did order reform in 2000 (i think) they took the old m-w series pricing which was very antiquated and replaced it with a system which can be easily and has been manipulated by some of the big companies like kraft and dean foodsbut it is what we are stuck with until some genius comes up with a better idea that will make everybody happy and you know how easy it is to please everyone!
dale":2ulh5zb7 said:seems pretty coincedental that every time the price gets up around $17/cwt all of a sudden a company will "find" a warehouse full of cheese they didn't even know they had. 12 mill lbs. discovered in late 2001, or as happened in october of 2002 an employee of kraft decided they had enough inventory to go the holidays and all the way till the super bowl (the biggest cheese consumption day of the year) so he dumped 22 train cars of block cheese on the merc. of course there were no takers the market crashed. we ended up loosing over $6/cwt in one month on the milk check. that would be the same as if you had a regular job working in a shop making parts (or whatever) and the boss came in and said we have been pushing you to make X amount for a while now and we have paid you Y amount but you did what we asked so well that now we can't sell all of it so for the next 6 months we are only going to pay you $12 /hr instead of 18, good job keep it up. a while ago there was talk of captive supplies in the beef market same idea here there is no mandatory reporting of inventory, therefore no penalties for not or for misreporting stocks. so it is easy to see why it can be and is manipulated by the companies large enough to hold inventory. the cooperatives are of no value to the dairy producers because they work for the benefit of the processors not the producers.