Has the time come for federal order reform 2.0?

The dairy market disruptions from COVID-19 through 2020 and into 2021 exposed flaws in the foundation of U.S. dairy policy and milk pricing. Numerous discussions have been had over negative producer price differentials (PPDs), depooling, the Class I formula, and other...

Is It Time to Simplify Milk Pricing?

Tossing out federal orders is not necessary, but a system that balances the needs of both the fluid and export markets must be considered for the future. The unprecedented volatility in dairy markets over the last several months has raised questions about how milk is...

Is It Time for Supply Management?

As in every downturn in milk prices over the last century in the US, groups of dairy farmers, primarily small farm advocates, are talking about some type of supply management system in an effort to increase milk prices. The concept is simple – produce enough milk to...

Can Dairy Be Profitable?

Better Ways to Price Whey Two years ago, I wrote an editorial for Cheese Market News titled “What way to price whey?” which highlighted the problems with price discovery for a variety of whey products. While those problems persist, there are several solutions being...

Dairy Economics 101

I. Introduction Price volatility in the US dairy industry started 25 years ago following reforms in the 1985 Farm Bill. Changes in dairy policy in Oceania, the EU, and the US have led to increasingly volatile dairy commodity prices. Since 2007, regional dairy markets...