In a report dated May 31, National Milk Producers Federation President Jim Mulhern writes that NMPF, along with the International Dairy Foods Association and the U.S. Dairy Export Council are joining forces to promote the marketing of dairy products internationally, i.e., exports.
The three organizations’ slogan is “Got Jobs?” reflecting their opinion that milk is a cash cow for jobs.
But jobs for who? Not the U.S. dairy farmer, who is making the milk and going broke.
Mulhern makes clear that this collaboration is about the 2018 Farm Bill and to influence politicians to adopt “export-friendly policies” and “an effective safety net for farmers to help them endure tough times.”
Encouraging and accommodating dairy farmers to produce an excess milk supply so that NMPF-IDFA-USDEC can export the cheapest dairy products in the world with the cheapest milk in the world, is causing the “tough times” for the U.S. dairy farmer, who sells his milk for less than what it cost to make it.
It is universally recognized that the milk price is given by the marketplace and that the volume of milk delivered to the marketplace is the fundamental driver of the milk price.
The marketplace will give a profitable milk price only when the milk supply is balanced with profitable demand.
Exports that are unprofitable for the U.S. dairy farmer should not be pursued and are only causing the milk volume glut and resulting unprofitable milk prices that are ruining dairy farmer’s economic lives and dairy farm families.
Just because U.S. dairy farmers have the ability to produce cheap, surplus milk far in excess of anyone’s ability to create profitable demand, they should not do so.
Similarly, neither the U.S. dairy farmer nor the management of their dairy farmer member owned co-ops should support NMPF, IDFA or USDEC in their efforts to expand exports that do not pay a profitable price for milk used in the exported products.
Mulhern further says that NMPF’s “own export sales program, Cooperatives Working Together (CWT), is moving large volumes of cheese, butter and whole milk powder into international markets.”
Note, CWT is paid for by the U.S. dairy farmer, subsidizing the cheap export sales in addition to being paid for the milk at less than the cost to make it.
Clearly, NMPF, IDFA and USDEC only want to benefit themselves with more and more and cheaper and cheaper milk, not the U.S. dairy farmer who is going extinct producing an excess milk supply for NMPF, IDFA and USDEC and their exports.
Dairy farmer: You do not need a political safety net for tough times — You need to eliminate the tough times by properly managing the milk you make and your co-ops.
NDPO co-op management policies will help dairy farmers properly manage the milk made so that the milk supply is balanced with both domestic and international profitable demand, thereby generating a profitable milk price for as many dairy farmers as possible and preserving as many existing dairy farm families as possible regardless of size or location.
To learn more about NDPO’s co-op management policies, contact Mike Eby, chairman, at (717) 799-0057, email@example.com, or like us on Facebook-National Dairy Producers Organization, or www.nationaldairyproducersorganization.com.