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Thread: Grassland

  1. #81
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    I want an honest discussion about supply management. I know everyone has their bias but I want real answers. Is Canada better off than the USA or vice versa? Isn't it hard to start a small dairy in either county?


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  2. #82
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    Supply management sounds like a good idea but I don't think it will ever work. If we all worked together and limited growth we would get a huge milk price but that would not keep us competitive in the world markets and they would buy milk products elsewhere.

  3. #83
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    Quote Originally Posted by milklotsofcows View Post
    I want an honest discussion about supply management. I know everyone has their bias but I want real answers. Is Canada better off than the USA or vice versa? Isn't it hard to start a small dairy in either county?


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    As most can probably tell by my posts, I am no fan of supply management. I don't like being told what I can and cannot do when it comes to my business. In Canada it seems harder for anyone to start up vs here in the U.S.

  4. #84
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    Quote Originally Posted by Baazevedo1 View Post
    As most can probably tell by my posts, I am no fan of supply management. I don't like being told what I can and cannot do when it comes to my business. In Canada it seems harder for anyone to start up vs here in the U.S.
    That's what I thought. People need to look where it's been tried and see the result. I think the government screws up everything.


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  5. #85
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    Quote Originally Posted by milklotsofcows View Post
    I want an honest discussion about supply management. I know everyone has their bias but I want real answers. Is Canada better off than the USA or vice versa? Isn't it hard to start a small dairy in either county?


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    I am not as familiar with the consequentialist arguments, but I can see why controlling supply through government dictate could be problematic long term. Any state distortions in supply and demand will have rippling effects.

    From a moral standpoint I don't see how anyone has a right to control by force how much anyone else produces.
    Individuals should be free to engage in any voluntary exchange.

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  6. #86
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    You guys can create your own perfect world in your minds, but you still have to live and work in this one.

    Quotas are coming, like it or not. Processing has become a big limiting factor and overproduction losses can no longer be shouldered by the masses.

    God help us if government gets involved, but the writing is on the wall for a processor quota.

  7. #87
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    It's already happened in California. I couldn't leave fast enough

  8. #88
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    Quote Originally Posted by whistle pig View Post
    You guys can create your own perfect world in your minds, but you still have to live and work in this one.
    What does this mean?

    Quote Originally Posted by whistle pig View Post
    Quotas are coming, like it or not. Processing has become a big limiting factor and overproduction losses can no longer be shouldered by the masses.

    God help us if government gets involved, but the writing is on the wall for a processor quota.
    I don't think I would oppose that. What exactly do you mean though? Processors just being unwilling to take on more milk?



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  9. #89
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    Andrew, the majority here believe in free markets...I do also, but that horse already left the barn.

  10. #90
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    A lot of processors have already implemented some sort of quota and the ones that haven't are working on it.

  11. #91
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    Quote Originally Posted by whistle pig View Post
    Andrew, the majority here believe in free markets...I do also, but that horse already left the barn.
    Oh. Well sure, we've come a long way from the markets that created our prosperity. No reason to oppose further encroachment though is there?

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  12. #92
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    Quote Originally Posted by whistle pig View Post
    A lot of processors have already implemented some sort of quota and the ones that haven't are working on it.
    I think this is different from government interference. A processor quota is still a free market because you could still build your own processing facility and produce as much as you desire.


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  13. #93
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    Quote Originally Posted by milklotsofcows View Post
    I think this is different from government interference. A processor quota is still a free market because you could still build your own processing facility and produce as much as you desire.


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    That's a valid point. Still the same idea of someone else dictating our business, however.

  14. #94
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    Quote Originally Posted by Baazevedo1 View Post
    That's a valid point. Still the same idea of someone else dictating our business, however.
    Well...all business is ultimately dictated by someone else... the consumer decides it all. True quota says that you aren't allowed by the government or some other body to make more... free business is when you are told you can't make more because no one will buy it.

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  15. #95
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    Quote Originally Posted by drdiederich View Post
    Well...all business is ultimately dictated by someone else... the consumer decides it all. True quota says that you aren't allowed by the government or some other body to make more... free business is when you are told you can't make more because no one will buy it.

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    Valid point. I understand the supply issue. I understand that most plants are full now. Most people are holding off on expanding atm. The market is dictating the situation.

    I am not a fan, however, of long term quota being a part of the formula. Regardless of whether it's government enforced or the plants decide to do it. I know right now there is a choice of you don't like your plant, go to another. Problem is most plants aren't taking new milk right now. If all plants decide to put in quotas, then you don't have a choice. I hope that all plants don't put quotas on.

  16. #96
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    Quote Originally Posted by Baazevedo1 View Post
    Valid point. I understand the supply issue. I understand that most plants are full now. Most people are holding off on expanding atm. The market is dictating the situation.

    I am not a fan, however, of long term quota being a part of the formula. Regardless of whether it's government enforced or the plants decide to do it. I know right now there is a choice of you don't like your plant, go to another. Problem is most plants aren't taking new milk right now. If all plants decide to put in quotas, then you don't have a choice. I hope that all plants don't put quotas on.
    Holding off expansion? Every large dairy around me is chomping at the bit to expand. If there isn't some sort of processor controlled production, what do you see as the answere? A couple years of 7$ milk?

  17. #97
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    While I do want to contribute more substantially to the conversation, I have to run now, so I will only throw this out there as a teaser talking point...

    As soon as I can hold on to my milk production (store it on farm somehow?) and not sell it for six months to wait for the price to rise, then I will get excited about the possibility of moving away from a quota system

    I know I'm horribly oversimplifying a very nuanced subject, and I'm aware that pricing contracts exist in many various forms, but eventually and fundamentally, the processors know we can't not sell our milk. Period.

    I'll be back later tonight to see where this goes

  18. #98
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    Where I am at no one is expanding because plant capacity is maxed. No one is taking milk. And plants aren't adding capacity just yet. They're waiting for us to work through our excess supply in the u.s.

  19. #99
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    No one has an opinion on whether plants should be forced to take on these 75 Grassland producers?

  20. #100
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    Quote Originally Posted by cousinit View Post
    No one has an opinion on whether plants should be forced to take on these 75 Grassland producers?
    Opinion:
    No

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