National Dairy
Producers
Organization Inc.
"Our number one priority is producer profitability for sustainability"
Board of Directors

Mike Eby
Chairman of the Board
Pennsylvania

Paul Rozwadowski
Vice Chairman Wisconsin

Gary Genske
Treasurer California

Deborah Mills
Secretary Minnesota

Pete DeHaan
Member Oregon

Bob Krucker
Member Idaho

John J. King
Member Pennsylvania

Greg Millick
Member Georgia

Dan Meier
Member New York

Rob Baum
Member Vermont

Joe Arens
Member Michigan

John Larsen
Member Minnesota

Tom Wing
Member Michigan

Press Releases

THIS MARK MATTERS – DFA

DFA This Mark Matters Intro Graphic

“This mark matters – DFA”, so says the DFA management slogan.

IT CERTAINLY DOES MATTER!

The management of DFA continuous to destroy U.S. family dairy farms, our safe and secure national milk producing infrastructure and rural communities in it’s pursuit of the maximum quantity of the cheapest milk possible.

DFA is the largest U.S. dairy farmer member owned co-op based on revenues and assets.

Per Rabobank, of the top 20 dairy companies in the world in 2018, DFA was number 6 in sales.

In 2018, DFA grew milk production by 2.5 billion pounds while LOSING 532 family member dairy farms. (Hoard’s Dairyman, Oct. 10, 2019 issue)

The loss of U.S. licensed dairy farms between 2009-2019 was 20,745 (Progressive Dairy, April 19, 2020 issue) with DFA losing the most of all U.S. co-ops.

Yet, Rick Smith, DFA CEO writes on Nov. 12, 2019 that “We remain committed .. to preserving the family farm for generations.” REALLY?

DFA dairy farmer co-op members are some of the most poorly paid U.S. dairy farmers. Nearly all DFA co-op “profit” goes to DFA management and/or DFA joint venture partners, NOT dairy farmer co-op members.

According to Genske, Mulder & Co., LLP, CPA, DFA has earned a 10 year average 18% profit for it’s management and 75+ joint venture partners, much of which has come from “below cost” raw milk prices paid to DFA dairy farmer members.

DFA management see their job ONLY as getting, filling and shipping the maximum orders for milk and/or milk products for management benefit by any means possible, sacrificing dairy farmer member’s milk price to do so.

DFA management has failed tragically to perform it’s fiduciary duties and responsibilities to benefit and preserve co-op dairy farmer membership with a fair, sustainable, profitable milk price.

If DFA is to preserve the family farm for generations, as stated by Smith above, DFA dairy farmer owner members need to change THEIR DFA management personnel and/or policies and adopt NDPO’s co-op
management policies which requires all DFA members to work “cooperatively” and share in a pro-rata, across-the-board, proportional milk reduction, as required, to continuously balance DFA’s milk intake with profitable demand for member milk, yielding a sustainable profitable milk price from the marketplace for most members and thereby preserve as many of the remaining DFA family farms as possible.

Mike Eby
NDPO Board Member

MARKET ECONOMIC PRINCIPLES HAVE NOT CHANGED

NDPO Info Graphic

COVID 19 has not repealed marketplace supply/demand economics — the virus just made complying therewith very difficult.

Assume milk demand has now decreased by 40% at a time when the milk supply already exceeded profitable demand by 10% (March 2020 milk production for the top 24 states was up 2.4% over the previous year).

Under the assumed facts, marketplace supply/demand economics requires a 50% reduction in the milk supply to be balanced with the reduced demand in order for the marketplace to generate a profitable milk price.

Without significant milk supply reduction, even with significant government action of financial support, a profitable milk price will not be achieved.

The required milk supply reduction WILL be accomplished either by the continued culling of dairy farm families OR the remaining dairy farmers sharing in the culling of some cows and balancing the milk supply with whatever profitable marketplace demand exists or is created going forward.

It is a dairy farmer choice.

Mike Eby
NDPO Board Member

USDEC GOAL

Decorative cargo ship image

The goal of USDEC is to increase the volume of U.S. dairy exports from equivalent of 15% of U.S. milk solids to 20%.

Because dairy farmers are not paid a profitable price for the milk used in the exported products, this USDEC goal is to increase the dumping of unprofitable U.S. made milk onto the global market to 20% — and dairy farmers are paying to achieve this goal!

A better goal for dairy farmers would be to just reduce the milk supply and balance the milk supply with profitable demand.

Bob Krucker
NDPO Board Member

PROOF THAT THE ECONOMIC LAW OF SUPPLY AND DEMAND WILL NOT BE DENIED

The CME simply reflects present marketplace sales and guesses about the future marketplace supply/demand economics.

The Federal Order equations are irrelevant to the milk marketplace other than setting so-called minimum milk prices for dairy farmers which are also ultimately based on marketplace supply/demand economics.


The marketplace buyers will pay whatever they have to in order to get the milk they need, BUT not a penny more.

If the national milk supply is continuously balanced with or slightly less than profitable demand, most dairy farmers will see a profitable milk price.

The DFA-NE “experiment” may not raise milk prices IF non-DFA-NE milk and/or milk ingredients are imported by DFA from other areas.

The DFA-NE management will determine success or failure in raising milk prices.

I suspect existing DFA management is only interested in stopping the milk dumping (bad P/R) and NOT interested in raising milk prices for their NE co-op members or they would have implemented supply reduction prior to the present dumping.

NDPO has said since 2010, “MATCH SUPPLY with FARMER PROFITABLE DEMAND”!

Mike Eby
NDPO Board Member

GOOD – BUT NOT GOOD ENOUGH

The recently announced DFA-NE supply management plan is good, BUT NOT GOOD ENOUGH.

FINALLY, DFA management can no longer ignore that milk supply management is required now that milk has to be dumped.

DFA’s plan to pay “Full value” for 85% of March 2020 milk production and what ever the market will pay for any milk exceeding the 85% volume is not good enough.

It must be noted that “Full value” will not be a “profitable” dairy farmer milk price even for the 85% of production.

DFA management’s goal must be to balance the co-op milk intake with “profitable demand” from the marketplace for co-op member milk.

DFA management’s goal must be to implement policies that will continuously balance the co-op milk intake with marketplace demand that pays a profitable milk price to DFA co-op dairy farmer members.

DFA management’s goal must be to implement NDPO’s co-op management policies.

DFA dairy farmer owner members need to change THEIR DFA management personnel and/or policies and adopt NDPO’s co-op management policies which requires all DFA members to work “cooperatively” and share in a pro-rata, across-the-board, proportional milk reduction, as required, to continuously balance DFA’s milk intake with profitable demand for member milk, yielding a sustainable profitable milk price from the marketplace for most members and thereby preserve as many of the remaining DFA family farms as possible.

To learn more about NDPO’s co-op management policies, contact Mike Eby, NDPO Chairman, (717) 799-0057, mikee@ndpo.us, or like us on Facebook – National Dairy Producers Organization, or www.nationaldairyproducersorganization.com

Bob Krucker
NDPO Board Member

PAY INCENTIVES ARE WRONG

Dairy farmer co-op management pay incentives are wrong.

Existing co-op management pay incentives are based on milk NOT members.

Existing co-op management are paid on ever increasing dairy sales and market share which requires ever increasing and cheaper milk, all at the expense of a profitable dairy farmer milk price.

NDPO encourages dairy farmer members to make an immediate change to pay incentives for THEIR co-op management.

Co-op management should NOT be paid based on milk volume but rather on whether the dairy farmer members receive a profitable milk price from the marketplace.

Co-op management pay should be based on the preservation of co-op dairy farmer membership receiving a profitable milk price NOT based on milk volume, dairy sales or market share.

Co-op management should profit ONLY when dairy farmer membership is maintained and dairy farmer members profit.

Bob Krucker
NDPO Board Member