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Thursday, June 03, 2004 Page: 7A
SINCE 1981, DAIRY FARMERS HAVE BEEN ANXIOUSLY WAITING FOR A REALISTIC PRICE
FOR MILK. FINALLY, IN APRIL 2004, PRICES STARTED TO MOVE UP. THE PRICES
ESCALATED CONSIDERABLY MORE FOR MAY’S PRODUCTION. VARIOUS REASONS HAVE BEEN
GIVEN BY MANY PEOPLE FOR THE SPIKE IN MILK PRICES. THE ANSWER IS SIMPLE
WHENEVER THE SUPPLY OF ANY PRODUCT TIGHTENS, THE END RESULT USUALLY MEANS
HIGHER PRICES. THERE MAY BE VARIABLE REASONS WHY THE SUPPLY TIGHTENS, BUT, THE
END RESULT IS USUALLY THE SAME. DURING MANY MONTHS OF 2003, DAIRY FARMERS
WERE PAID THE SAME PRICE THEY RECEIVED IN 1978. REGARDLESS WHAT YOU MAY HEAR,
THE USDA, NOR ANY OTHER STATE AGENCY, DID NOT ESTABLISH HIGHER PRICES ON MAY
1ST BECAUSE OF WEATHER OR ECONOMIC PROBLEMS FACING THE DAIRY FARMERS. THE USDA
HAS A SPECIFIC FORMULA THAT ESTABLISHES MILK PRICES TO DAIRY FARMERS. THE
FORMULA THAT DETERMINED THE HIGHER PRICES ON MAY 1, 2004, WAS IDENTICAL TO THE
FORMULA THAT DETERMINED THE LOW PRICES TO DAIRY FARMERS IN 2003 (AND MANY
OTHER YEARS). BASICALLY, THE USDA TAKES THE MILK THAT COMES FROM DAIRY COWS
AND CLASSIFIES IT INTO FOUR CLASSIFICATIONS BOTTLED MILK; MILK USED FOR ICE
CREAM; MILK USED FOR CHEESE; AND MILK USED FOR BUTTER AND POWDER. IN ESSENCE,
WHEN THE PRICE OF MILK GOES DOWN IN THE STORES, USUALLY, YOUR DAIRY FARMERS
ARE RECEIVING LESS AND WHEN THE PRICE OF MILK GOES UP IN THE STORE, THE
FARMERS ARE RECEIVING MORE. THE BOARD DOES NOT ESTABLISH MINIMUM OR MAXIMUM
PRICES FOR OTHER DAIRY PRODUCTS (BUTTER, CHEESE, ETC). THE HIGHER PRICES THAT
CONSUMERS PAY FOR THEIR MILK STARTING IN MAY WILL NOT TRICKLE DOWN TO DAIRY
FARMERS UNTIL JUNE 18TH. THE MAIN THING FOR CONSUMERS TO REMEMBER IS THE MILK
PRICES DO NOT START AT THE FARM. EVEN THOUGH DAIRY FARMERS ARE EXPERIENCING
ACCELERATED COSTS, THESE COSTS ARE NOT THE REASON FOR HIGHER PRICES. PRO AG
AND SOME OTHER ORGANIZATIONS ACROSS THE COUNTRY HAVE PROPOSALS THAT WOULD
PRICE MILK ON THE DAIRY FARMER’S COSTS OF PRODUCTION. THESE PROPOSALS WOULD
TAKE THE ROLLER COASTER RIDE OUT OF MILK PRICES, THE PROPOSALS WOULD RETURN A
FAIR PRICE TO THE DAIRY FARMERS, AND THE PROCESS WOULD BE AFFORDABLE TO
CONSUMERS. WE NEED THE CONSUMERS HELP IN ORDER TO OBTAIN A NEW MILK PRICING
FORMULA BY CONTACTING LOCAL CONGRESSMAN. Arden Tewksbury
Progressive Agriculture Organization
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