04-18-2017, 03:59 PM
Just read today Mullins took 8. Long way to go, but it's a start
Doesn't anyone here ship to foremost? Thought they did a basic processor quota system?
04-18-2017, 04:33 PM
Baazevedo: Would your processor take your milk if you wanted to fill up your barns now? Or do you have to wait until they can handle it? Did you have any agreement or contract when you started shipping to them?
Originally Posted by Baazevedo1
04-18-2017, 04:53 PM
I think they would. They are not plum full and I would only be adding another 200 cows, basically doubling what I am now.
Originally Posted by BLOOMFIELD
There is no contract or agreement. If I had a full truck of milk, I could call another plant tomorrow and they'd come pick it up. This is to say that you can switch easily, not that they'd pick me up right now because most plants are pretty full.
04-18-2017, 06:17 PM
Today's Washington Post has an article about this. There are 477 interesting comments so far. Canada is not out of the woods yet.
04-18-2017, 06:25 PM
Also a good article at hoard's dairyman intel.
Both of these articles can be found on agweb.com in the dairy forum.
04-18-2017, 06:28 PM
The Donald said today in Kenosha that Canada has been very unfair to our dairy farmers. Let's see what kind of deal he's going to cook up!
(only said half in jest, I'm genuinely open minded to see what he will do)
04-18-2017, 06:29 PM
Originally Posted by ElJefe
04-18-2017, 09:52 PM
So, mostly as a point of clarification, everyone realizes that a big underlying aspect of this whole situation has effectively been a lowering of the price that we get here in Canada for our milk? That any plant that is set up to use/produce diafiltered milk can do it using Canadian milk but paying world trade prices? It is definitely not a situation where we have closed our borders to the product that was previously coming in from the states, we have just adjusted our price to reflect the market reality, and it has made the imported milk way less competitive. Whole fluid milk pricing is basically unchanged, but the blended farmgate price we receive will reflect how the different geographical markets within the country are utilizing this new class of milk
All that being said, it is incredibly unfortunate to hear about producers being hung out to dry by grassland. The writing has been on the wall for months on this change, the negotiations to make it happen have quite literally been going on for 2-3 years and have been very serious for the last 6-12 months. I would absolutely hate to be in their position
04-19-2017, 11:35 AM
I think what Canada did was completely fair, there was an unintended loophole being exploited and it got closed. The US was having the same issue years ago with milk protein concentrate coming in from Oceania.
Whistle pig mentioned $7 milk somewhere....maybe that's what it takes for supply to come back down and stop the expansions. The dairy herd size in the US has not stopped growing even through the low prices, and IMO there are probably 300,000 cows too many right now. Beef price isn't great either, so that's not helping take cows out of the milking string. Also, parts of Europe are still gearing up to produce more milk after quotas were removed in 2015, and cold stocks of butter and cheese are growing rapidly.
It is going to take a while for prices to get better...
04-19-2017, 12:23 PM
It is going to take a while for prices to get better...[/QUOTE]
I've been saying that for awhile now & everybody was always like oh come on quit being so negative.
04-19-2017, 01:15 PM
I agree with cows250, this is Grasslands fault. They knew about this and failed to develop an alternative market for that milk.
Fluid milk sales have been steadily declining for some time now. Somehow, alternative products such as soy, rice and nut (almond) juice have been gaining market share. Even though it's much more heavily processed and expensive! Why is this?
There are two major failures I see. Innovation. Marketing. Lack of innovative products to compete in the marketplace and lack of adequate marketing of all dairy products and especially fluid milk. When is the last time you saw a fluid milk commercial? How often do you see dairy commercials? More than other juice beverages? No. Our checkoff dollars have failed us. The average consumer has to see an ad 7 times before they purchase a product. Does that mean I have to watch 7 super bowls before I go and buy real cheeee? It's terrible.
04-19-2017, 01:54 PM
I agree also.
I think there aren't many guys that can live very long with a reduced milk check, unfortunately that is the only solution here.
Don't get me started on the check off.....they are trying to implement an organic check off right now. Vast majority of farmers are strongly against it, but I have a feeling they will find a way to shove it down our throats.
04-19-2017, 01:57 PM
I'm not against check off, but they're doing a terrible job. We need better marketing. I just feel the dollars can't be spent better by someone who knows what they're doing
04-19-2017, 02:15 PM
Sooo... What is it you like about the check off?
04-19-2017, 02:32 PM
I think that if they marketed properly, it would be good.
04-19-2017, 02:33 PM
I figure we spent over $150k in checkoffs over the years.
It adds up.
04-19-2017, 09:18 PM
Here's a few crazy thoughts. First why in the world are we being forced to promote a product we don't even produce. I produce raw milk that is pretty much illegal to sell to anyone except a processor. To me it is the same as making the steel companies promote car sales. 2nd why do all the promotion boards get 15 cents per cwt no matter how much or little they actually do to promote dairy sales. I think they should get paid a percentage of the milk check. That way they could practice what I have been preached about for the last 50 years...get more efficient. And lastly, why don't we get the government completely out of our lives. In my world, farmers should contract with the processor to deliver raw material (milk) at an agreed amount and price for a set term to be determined by each party. True capitalism. Not too difficult.
BTW, Belgioioso Cheese plant is coming on line soon. They will need 30 to 40 loads of extra milk. Good news for WI farmers. Was told that Costco tried to put the screws to them to lower the price of cheese. Aurrichio told them to shove it and after a short time Costco came back and took their cheese at the original price hence the need for a new plant. We need more processors like them.
04-19-2017, 10:36 PM
While the Federal Order Minimum isn't a perfect system, I do think it helps protect the smaller farms. Without it there would be no reason in times like this that a processor couldn't just say they are paying $5/cwt take it or leave it. Instead milk is milk, and while volume, quality, and component premiums do vary between plants, it is a relatively even playing field. As for contracting, I think it is an awesome way to do business and most of the farms I have worked on would either contract their milk with the processor, hedge on the CME, or a combination of both. Some years they made money, some they didn't make as much as they could but it smooths out the cash flow. However, in times like this no one is going to offer a contract for $20...why would they, so farms are still at the mercy of the market after a long term downturn.
As for the milk marketing boards...I am sure they do some good, but I am not sure it is enough, or can be enough. They are trying to promote a commodity, and commodity milk isn't really that popular. Specialty cheese, marketed by the producer and shops, big money. But some version of "drink more milk, it's good for you, 'cause we say so..." not going to cut it.
Also, while typing away, I wondered what happened to CTW (Cooperatives Working Together) and why I hadn't heard of any herd buy outs. https://consumerist.com/2016/09/08/b...-piece-of-52m/ I know I have been less involved in the news lately, but I had heard nothing of this. What a crock. Not sure it helped that much anyway, but I am sure multi-millions lined lawyers' pockets last Fall.
04-19-2017, 11:11 PM
I think a lot of the loss of market share to non-dairy prodcuts such as "soymilk' and other beverages are part to blame. I think truth in labeling may help alleviate some of the problem but taking it one step further I think the general idea by many in this country that Dairymen and women are cruel to their animals and yadda yadda yadda..... has also hurt our markets. Dairy checkoff's responsibility here is to counter that negative influence from missinformed sources. checkoff dollars need to be spent not only finding new markets but protecting existing markets here in the US instead of relying on China, Russia or any other foriegn market. If checkoff dollars cannot be effective in doing this then the checkoff should be abandoned. Like it or not our industry is in a battle on several fronts both foreign and domestic.
On another note just what is the import situtation as we know it right now? Maybe it's just me but I was under the understanding that we are importing dairy products and caesine etc etc from other countries. please somebody weigh in on this so that I can understand a bit better. My thoughts are if we have such a huge glut why would we be importing more dairy??
04-19-2017, 11:47 PM
I guess I lean more to a protectionist environment when it comes to trade. I've always felt you cannot trust anyone but yourself.......now before anyone jumps all over me for this, hear me out. Oceana, Europe, India, are all countires that rely heavily on world dairy market prices. they all like our markets because of our standard of living and the accompaning prices that are paid for our products and theirs when they import into our markets by trading we are effectively lowering our own prices to be competitive on a global scale........wouldn't you agree? What if say for example we did move to protectionism on a national level when it comes to dairy or any other ag product for that matter. would it really be all that bad? I'm sure oceana would love to fill the void in China, Europe would love to fill the void in many other countries and Inda would love to supply milk to Russia. If Canada has their own needs met by their Qouta system, let them live by it. call me crazy but isn't it easier to manage total production on processor level or maybe even nationally than internationally?
I guess at this point I'm not advocating a qouta system just a more localized supply and demand with restrictions in place to govern stocks on hand so that we don't step on our own farmers, (don't buy more of what you don't need)