U.S. dairy farmers should listen to the following words of Buzz Shahan, COO United Potato Growers of America, Sept. 2020 issue of Potato Grower.
“Chaos happens for many reasons, the most common being that no entity takes charge of maintaining order. When an entity is in charge, it puts in place a certain behavioral structure that brings order to chaos.”
This brings to mind the co-op management hired by co-op dairy farmer member owners “who operate chaotically, without regard to the most vital element in (dairy farmer’s) economic structure: supply chain management.”
Existing co-op management “wander through the marketplace, smashing it with chaotic supply-chain disorder at every opportunity” by encouraging and accommodating an excess supply of co-op milk exceeding the profitable marketplace demand for member milk.
Dairy farmer co-op member owners assume the entire financial risk of producing this milk supply exceeding profitable marketplace demand. Dairy farmers need to hire co-op management who will properly manage this milk supply they feed into the marketplace. “With today’s information technology, supply chain metrics are easily dialed in.”
DAIRY FARMER: Stop the chaos. Have YOUR co-op management take charge of maintaining marketplace supply chain order and achieve a profitable milk price from the marketplace for most dairy farmer co-op member owners. When the milk marketplace is dialed in with a milk supply balanced with profitable demand, milk production can be profitable. Without profit, dairy farmers can make milk only until they run out of money.
Join and implement the co-op management policies of NDPO and cooperatively share in continuously balancing/matching YOUR co-op milk intake with PROFITABLE marketplace demand for co-op member milk and thereby obtain a profitable milk price from the marketplace and hold YOUR hired co-op management accountable to dairy farmer co-op members and dairy farmer profitability.
Bob Krucker, Idaho dairy farmer