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ND | I think far too many are focusing on the wrong side of the supply/demand equation. Yes we have an oversupply of milk but I feel that has more to do with the demand side than it does the supply side. Ever walk through the dairy section of the grocery store and start looking at prices. They are crazy! A gallon of milk is close to $4. A bucket of ice cream is $5. A small package of cheese is way up there too. Most of those prices are not far from what they were when milk was at $20 and yet they continued to put product on the shelves then. I realize everybody wants to maximize profit but the processors have been getting a pretty good deal on their raw product (milk) but we are not seeing that savings trickle down to the consumers. If we want to stimulate the dairy industry and do away with this oversupply of milk the solution is simple. Figure out a way to make products on the shelves more affordable and the whole supply/demand issue will work back to a happy medium. I guarantee there are a lot of additional jugs of milk that would be pulled out of the cooler if it were 50 cents a gallon less.
I just find it a bit funny that the producers are getting most if not all of the blame for this supply issue. Yet, while producers struggle to make a buck the processors are pulling in near record profits. The problem is easily recognized and yet we as producers continue to get the blame. | |
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Bloomber on Dairy $$$$
