MESHOPPEN, Pa. — It’s quite evident that all dairy farmers will be seeing a real spike in the prices they receive for their July’s production of milk. I was reminded today that the milk that was depooled in Federal Order #1 (and maybe other orders) will in all probability be returned to the value of the pool for July’s production.
Pro-Ag has readjusted their estimated price to be paid to dairy farmers for July’s milk to $18.82.
Remember, we have to do our estimating of prices on the old system, not the new system. Sometime we may be lower than 25 cents from the actual price. However some people are saying it’s possible to see $19 per cwt. price. Please remember because of the sudden and drastic decline in the cheese prices it will have an adverse effect on the Class III price for August’s milk production and possibly bring down the Class I price some. If this happens, maybe dairy farmers finally will say we have had enough of this erratic pricing system, and maybe now they will be willing to roll up their sleeves and say we are now ready to help get the Federal Milk Marketing Improvement Act introduced and passed by our US Senate and Congress.
You must understand that the co-ops that Depool Class III milk do it for one reason. When the milk is depooled, they will make more money at a cheaper price, but also remember the amount of money that other dairy farmers will lose because of the decrease in the total value of the pool
If you’re not ready to help Pro-Ag with their endeavor to obtain a realistic pricing system, then you never will.
Pro-Ag can be reached at 570-833-5776.
Manager of Pro-Ag
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