Milk Producers Council
"Serving the Dairy
Industry for Over 50 Years"
|
|
|
|
Welcome to the office website of Milk Producers Council! MPC is a nonprofit organization representing dairy families throughout California. For more than 50 years, our staff and board of directors have been working on behalf of our members on issues such as milk pricing formulas, environmental regulations and any other local, state or federal issues facing dairy families today. We hope you find this site useful and informative. If you have any questions about MPC and the work we do, please contact us at (909) 628-6018 or by email at mpc@milkproducers.org.
MPC News Click HERE to read the November 26th edition of the MPC Newsletter (Includes current commodity price information) CARES has published their October 2008 "Dairy CARES Report"
An Article Worth Another Read... More Comment on "The Magic of Pooling" Syp Vander Dussen, in his outstanding articles the last couple of weeks, explained the “magic of pooling” concept. He wrote, “If I produce one extra load of milk, which of course will go to powder (and possibly to the CCC), it will have a value of less than $10 to the pool, but I will receive a blend value of approximately $16.00 cwt for that load. But remember, the income to the pool bucket is about $10.00! That $6.00 loss is shared by all! Stated in again another way, it is in the best interest of every producer to produce as much milk as he can, always, because the lower value for that excess product is borne by everyone.” What Syp is pointing out is the fatal flaw in our milk pricing regulation: the price risk associated with increased production is not borne directly by the person making the production increase; it is transferred to the group at large. Basic economics tells us that supply and demand for any product is kept in balance by each individual participant’s calculation of risk verses reward. The “magic of pooling” transfers the risk to the entire group and the individual is left with the “reward.” Because of this reality, it is perfectly rational for each individual producer to grow production indiscriminately, while at the same time it is obviously irrational for dairy farmers collectively to produce more milk than can be profitably marketed. Click HERE to read this full article.
An Article Worth Another Read...
My View on Milk Production Increases The dairy industry in California continues in its addiction of over-production of milk. Dairy producers seem to have only one clear focus; produce more milk. As costs go up, as milk prices decline, we produce more milk. As coops battle to place milk and milk products, we produce more milk. With 3x milking, rBST, advancing genetics, gender-specific semen, we produce more milk. In a perfect world, where the milk we supply and the demand for those products remained somewhat in balance, this would be a strong sign of a vibrant and healthy industry. But the reality is, dairymen produce in an unrestrained fashion with no consideration of demand, leaving the industry in a perpetual state of overproduction which causes a myriad of problems, all of which should be unnecessary. Click HERE for the rest of the article.
An Article Worth Another Read...
Some Background About the CME and How It Works Not a week passes without reference to what has happened to Cheddar cheese and butter prices (and occasionally, nonfat dry milk prices) on the CME. It’s important to follow those prices because they are the most current indication of changes in cheese and butter prices – two of the major three products that are used in milk price formulas in California and federal orders, and (we are told) by plants in unregulated areas that compete with plants that are regulated. Click HERE to read more about the CME and how it works.
News Release
MPC Responds to Dramatic Increase in Water Board
Fees CHINO, CA - Today, MPC sent a letter to California Governor Arnold Schwarzenegger after the State Water Resources Control Board (SWRCB) said that higher costs by the agency necessitated a 40 percent increase in the annual fees paid by dairy families throughout the State. In the letter, MPC asks the Governor to keep these free-spending government agencies in check. You can find the full letter HERE.
News Release MPC Asks USDA to Examine Price Reporting Practices CHINO, CA - Today, MPC sent a letter to John Mengel, Chief Economist at the Dairy Programs section of USDA's Agricultural Marketing Service (AMS) asking that he look further into the Mandatory Price Reporting practices, specifically with regard to nonfat dry milk and dry whey. John Kaczor, editor of MPC's Friday Update, has recently been exploring the discrepancies between the prices reported to USDA and CDFA for purposes of establishing the minimum prices paid to dairy farmers, and the substantially higher prices that are received by exporters of these products. The letter asks Mr. Mengel to look further into these discrepancies. To read the full letter, please click HERE.
Contact Information
|
|
Send mail to mpc@milkproducers.org with
questions or comments about this web site.
|
