Southtown farmer claims there's a flaw in the milk pricing system

US - Currently in New York state, the cost for dairy farmers to produce milk is nearly double the amount they are receiving for the product. According to South New Berlin farmer Ken Dibbell, it’s not a market trend – it’s a fundamental flaw.
calendar icon 9 January 2007
clock icon 1 minute read
Liquid milk prices are guided by the United States Department of Agriculture, under the federal milk order, but Dibbell contends that dairy cooperatives and mis-guided government policies are keeping farmers from getting fair, market-based returns on their milk.

“Cooperatives are not working for the farmers like they should,” Dibbell said, arguing that the disparity between what farmers are getting paid by processors, and what consumers are paying for milk, is a three-fold difference that is essentially unaccounted for. He believes the cooperatives – brokers who sell product to dairy processors on behalf of the farmers – are either not advocating enough for small dairy farmers, or they’re exploiting them.

Source: The Evening Sun
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