RULES

SUPPLY AND DEMAND RULES OF US DAIRY PRODUCERS

Richard A. Levins, identified as a professor emeritus of applied economics at the University of Minnesota, complains in Hoard’s Dairyman, January 10, 2021 issue, that the “rules” affecting dairy farmers don’t “match the playing field.”

However, the “rules” Levins complains about are government legislated rules, NOT the basic, universal supply/demand economic rules of the marketplace, which one would assume “a professor emeritus of applied economics” would speak of.

The government legislated rules that Levins discusses do NOT supersede or negate the ever present, always applicable supply/demand economic rules of the marketplace which DO MATCH the dairy farmers “playing field.”

It is just that the existing MANAGEMENT of dairy farmer member owned coops, which handle 85% of U.S. made milk, are not playing by the supply/demand economic rules of the marketplace.

Existing co-op management continue to encourage and accommodate a milk supply exceeding PROFITABLE marketplace demand which has resulted in
unprofitable milk prices for most dairy farmer co-op members.

Existing dairy co-op management fraudulently use the dairy farmer member owned cooperative organization for MANAGEMENT’S own financial benefit, but without and at the expense of providing an actual, sustainable profitable milk price for most dairy farmer members.

Co-op dairy farmer owner members should not continue to walk away from THEIR responsibility to properly manage THEIR co-op organizations.

The implementation of the National Dairy Producers Organization’s (NDPO) coop management policies by dairy farmer co-op members will prevent co-op management’s perversion and misuse of dairy farmer co-op organizations and will realign their co-op’s purpose to one of preserving as many dairy farmer co-op members as possible with a profitable milk price from the marketplace.

BOB KRUCKER
NDPO Member Idaho