Milk users haven’t even a remote thought YET that the milk surplus won’t continue to exist and that they won’t be able to continue to buy milk for less than the cost to make it.
Milk users believe that dairy farmers will continue to wrongly believe that they can out-produce unprofitable milk prices.
Even some bankers wrongly believe that dairy farmers need to maintain or even add cows to out-produce unprofitable milk prices.
BUT both will be proven wrong.
More and more dairy farmers are starting to understand that the milk supply determines the milk price and that they can share in the balancing of the milk supply with PROFITABLE demand.
Dairy farmers are starting to understand that the reason they have been price takers instead of price makers is simply that the milk supply has exceeded the PROFITABLE demand for the milk.
Dairy farmers are starting to understand the truth Michael Swanson, Wells Fargo ag economist, spoke in Progressive Dairyman, Feb. 7,2018 issue when he said “Every 1% change in milk production results in a 10% change in price” —- that a 3% reduction in the milk supply will move the milk price up 30%.
Dairy farmers are starting to understand that by implementing NDPO’s policies, they will prevent a damaging surplus of milk production which depresses milk prices and causes financial loss and reduction in the number of U.S. dairy farmers and will send the correct milk supply to the market and will provide a profitable milk price for most existing U.S. dairy farmers and preserve as many U.S. dairy farmers as possible regardless of size or location.
Dairy farmers are starting to understand that they can not only survive but prosper.
NDPO Board Member