I would like to encourage all dairy producers in Federal Order 33 to contact their field person, handler, cooperative, or farm organization to put a stop to the way that Class III milk can be pooled or depooled.
In April of 2004, depooling of Class III milk lost (cost) dairy producers $1.64 per hundredweight in F.O. 33. Fair is fair, and this should not be tolerated by producers or their organizations.
In the Northeast Federal Order and in California, there are stringent rules on pooling and depooling. Why not F.O.33? If dairy producers and cheese makers have to live with price uncertainty, why can’t the fluid handlers?
This would do away with the delay of Class I pricing. It seems to me with modem technology, we shouldn’t have to wait on NASS pricing (six weeks), but get it current for the Class I price. This would even out the unjust pricing.
Either way, something needs to be done to stop the hemorrhaging of pooling and depooling. Unless dairy producers speak up, nothing will be done. The ball is in our hands to do something.
It is very sad to see cheese blocks rise to a high of $2.20 in May and drop to $1.37 as of July 6. Class III milk as of this writing is down $5.76 per hundredweight.
I don’t know of any experts who could predict such volatility. It’s not good for pricing milk at the marketplace.
James W. Comp