sourgum

Member
DFA, farmer milk cooperative just bought the Dean's company which went bankrupt in November.This is a farmer governed cooperative. Wonder if this will have a positive effect on milk price for dairy farmers. Understand they handle 22% of fluid milk & milk products market in US. If farmers have a well run cooperative providing a decent market for milk then they may be buying more tractors this spring. What do you think.
 
As well as other big ticket items and more consumer goods, improving overall economic activity. Lots if us on this board understand that concept. Too bad more people in this world don't get it!
 
I hope it works for them. I had the understanding that Dean?s foods plants were already processing some milk for DFA. And if the plants were shuttered, where would they get that milk processed? So if what I understood to be the situation is in fact true, then this move is kinda forced upon the DFA Co-op. I like the Co-op system, and belong to a milk Processing Co-op here in Canada. I truly wish them well. Bruce
 
No matter who owns the small dairy farm output the big dairies and Walmart owned dairy division will set the maximum prices at retail.Too much product for the market equals low prices no matter who sells it.
 
Why does everyone think the price of milk is to low????

No shortage of milk in the store so someone must be producing it.

I would say you can not make a living milking 100 cows on a family farm but then again someone with 40 acres and a mule would think the price of corn is to low also.
 
It?s a win win if done properly. The way ADL (dairy coop) works is no you don?t receive more for your milk but if the coop is profitable than the share holders (dairy producers) receive an annual cash/investment bonus based on milk shipped. Win for all
 
very true, Bruce. closing the plants or having them converted to bottling soda would leave a whole lot of milk with no place to go. the sale of some of the Dean plants to DFA still has a ways to go before it is finalized.
 
They are buying them out of bankruptcy so they are probably getting them at a bargain price. This should help their margins and reduce some excess capacity for the industry.
 
I delivered hay to a large farm in Indiana, 40000 cow, looked them up and found out they are owned by coca cola!
 
Well that is it whether its good or bad the company/person that is producing and selling a product at the lowest price also sets the price for the whole market/industry.If someone
can't profitably meet that price they are going to be out of business sooner or later,happens all the time with most all products.
 

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