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 Milk prices may double in New Year 
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Post Milk prices may double in New Year
With Congress spending all its time trying to avert the fiscal cliff, a slew of other legislative matters are going unattended. One of them is the agriculture bill which, if not addressed, could lead to a doubling of the price of milk early next year.

It works like this: In order to keep dairy farmers in businesses, the government agrees to buy milk and other products if the price gets too low. The current agriculture bill has a formula that means the government steps in if the price of milk were to drop by roughly half from its current national average of about $3.65 a gallon.

Problem is, the current bill expired last summer, and Congress had been unable to agree on a new one. Several protections for farmers have already expired, and several more are set to do so over the next few months. One of them is the dairy subsidy, which expires January 1.

But instead of leaving farmers entirely out in the cold, the law states that if a new bill isn't passed or the current one extended, the formula for calculating the price the government pays for dairy products reverts back to a 1949 statute. Under that formula, the government would be forced to buy milk at twice today's price -- driving up the cost for everyone.

"If you like anything made with milk, you're going to be impacted by the fact that there's no farm bill," U.S. Secretary of Agriculture Tom Vilsack told CNN's Candy Crowley in an interview on State of the Union airing Sunday, Dec. 30.

"Consumers are going to be a bit shocked when instead of seeing $3.60 a gallon for milk, they see $7 a gallon for milk. And that's going to ripple throughout all of the commodities if this thing goes on for an extended period of time," Vilsack said.

snip

Read more here: http://money.cnn.com/2012/12/21/news/economy/milk-prices/index.html?hpt=hp_t1

:censor

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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. - FDR


Sat Dec 22, 2012 9:40 am
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Location: Fennell bay N.S.W. (AUS)
Post Re: Milk prices may double in New Year
THATS CHEAP! $3.65 a GALLON! (3.8 Liters) WE PAY $5.80 A LITER! So what's wrong with that?!? :roflmao so for a gallon we'd pay

$5.80 +
$5.80
$5.80
-------------
$17.40

now add an 600ml and 300ml to make roughly a gallon for an additional $3.20 and 2.00 respectively

Oh that's just $22.60

So blue Why are you complaining? :hmm

let's tally that up

and Mind you our dollar is ABOVE yours in the stock market

$22.60 Minus $3.65

we pay $18.95 extra. :rant :flame :headbang :evil

so why is $7 so bad Hmmm.. well what do you have to say about the price WE Australians have to pay for milk. who's too spoilt I.M.H.O.

and stop taking your FARMERS for granted THEY are the ones that work diligently for long hours to get the food on your plate do you know HOW HARD it is?.

I DO.

My step father used to work on a Dairy farm.

Do you have any idea how much cows Cr*p a day? Then you have to get a shovel and shovel the Cr*p up and it Reeks and after A while the smell seeps into your skin and you smell of cow cr*p Eww!.

To top that off you know how much our farmers get for only 1 liter of milk they sell 42.5 cents a LITER you heard right 42.5c a liter so W.T.F. do I pay $5.80 for? it doesn't make sense now does it? I remember when I was a Little boy(oh God no I'm sounding like my father) milk used to be 2 liters=85c back in the late 80's it used to taste better too, well for that matter EVERYTHING used to taste a lot better no GMO I guess.

/rant over

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Sat Dec 22, 2012 10:35 am
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Post Re: Milk prices may double in New Year
Here on the Farm milk costs us $0.50 a liter - and it RAW!!!!! Yeah!


:banana :brockoli

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Sat Dec 22, 2012 12:48 pm
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Post Re: Milk prices may double in New Year
Sky wrote:
Here on the Farm milk costs us $0.50 a liter - and it RAW!!!!! Yeah!


:banana :brockoli


Bet it's very tasty too.. :dam

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Sat Dec 22, 2012 2:45 pm
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Post Re: Milk prices may double in New Year
fr33kSh0w2012 wrote:
THATS CHEAP! $3.65 a GALLON! (3.8 Liters) WE PAY $5.80 A LITER! So what's wrong with that?!? :roflmao so for a gallon we'd pay

$5.80 +
$5.80
$5.80
-------------
$17.40

now add an 600ml and 300ml to make roughly a gallon for an additional $3.20 and 2.00 respectively

Oh that's just $22.60

So blue Why are you complaining? :hmm

let's tally that up

and Mind you our dollar is ABOVE yours in the stock market

$22.60 Minus $3.65

we pay $18.95 extra. :rant :flame :headbang :evil

so why is $7 so bad Hmmm.. well what do you have to say about the price WE Australians have to pay for milk. who's too spoilt I.M.H.O.

and stop taking your FARMERS for granted THEY are the ones that work diligently for long hours to get the food on your plate do you know HOW HARD it is?.

I DO.

My step father used to work on a Dairy farm.

Do you have any idea how much cows Cr*p a day? Then you have to get a shovel and shovel the Cr*p up and it Reeks and after A while the smell seeps into your skin and you smell of cow cr*p Eww!.

To top that off you know how much our farmers get for only 1 liter of milk they sell 42.5 cents a LITER you heard right 42.5c a liter so W.T.F. do I pay $5.80 for? it doesn't make sense now does it? I remember when I was a Little boy(oh God no I'm sounding like my father) milk used to be 2 liters=85c back in the late 80's it used to taste better too, well for that matter EVERYTHING used to taste a lot better no GMO I guess.

/rant over


Ahh, freak, but here is the reason you pay so much for milk:

Quote:
Farmgate milk price

Unlike many countries, there is no legislative control over the price that processing companies pay farmers for milk. Australian milk prices are based on the milkfat and protein solids. Farmgate prices can vary between manufacturers, between states, and among individual farmers, as firms operate a range of incentive/penalty payments related to milk quality, productivity and out-of-season supplies.


Read more here: http://www.dairyaustralia.com.au/Statistics-and-markets/Prices/Farmgate-Prices.aspx

Milk prices in the US are highly regulated thus the cheaper price.

Not spoiled - just more regulated.

Quote:
Over the past 125 years, a complex pricing system has evolved to deal with the problems
of milk production, assembly, and distribution. The various government and private
institutions making up the system are designed to work together to ensure that the
public gets the milk it wants, while dairy farmers get the economic returns needed to
provide the milk. The very complexity of the system, however, has baffled many and
led to numerous misconceptions.

Economic theory posits that the milk pricing system must balance the supply of milk
with the demand for milk. The physical uniqueness of milk complicates many of the
pricing arrangements that are available for other products or commodities. The complex
mix of public and private pricing institutions has arisen as producers, processors,
milk marketers, and consumers have grappled with that uniqueness.

The pricing of milk in the United States involves a wide variety of pricing regulations
based on public policy decisions. Some of these regulations include milk price supports,
Federal milk marketing orders, import restrictions, export subsidies, domestic
and international food aid programs, State-level milk marketing programs, and a multi-
State milk pricing organization. Nongovernment pricing institutions are also important—
the dairy cooperative being a major example. As the dairy industry has become
less regulated in recent years, the use of futures markets has engendered considerable
interest. In almost all cases, the major intent of public pricing policies is to somehow
influence producer (farm) milk prices.

For some 50 years, price supports have been the backbone of the pricing system for
milk and dairy products. The support price underpinned the entire price structure for
bulk milk sold by farmers either directly to processors or through cooperatives.
USDA’s Commodity Credit Corporation (CCC) stood ready to buy as much butter,
nonfat dry milk, and Cheddar cheese as manufacturers wanted to sell at specified support
purchase prices. These prices were calculated to return at least the announced
milk support price to the farmer. Until the 1996 Farm Act, interest in developing alternatives
to the support purchase program was minimal or nonexistent.

Federal milk marketing orders are concerned primarily with the orderly marketing of
raw fluid-grade milk from the producer to the processor. Legal and technical language
makes them complex. Underlying the entire pricing system is the linkage between
prices for various milk classes and the wholesale prices of manufactured dairy products.


Read more here: http://www.ers.usda.gov/media/306448/aib761fm_1_.pdf

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The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. - FDR


Sat Dec 22, 2012 5:33 pm
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