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cowMilk prices have dropped recently because of a big supply shift. About ten months ago there were milk shortages and very high milk prices.

Interesting that prices for milk are so volitile. Of course all agricultural goods have the potential  to experience big price changes, but suppliers are able to control prices for much of it by stockpiling when there are surpluses. Can not do that with milk cause it spoils too quickly.

At the heart of the problem is the nature of milk. Unlike grain farmers who can hold out for better prices by storing crops in a silo, dairymen must sell raw milk to processors or else it spoils. And cows keep producing whether the economy’s expanding or in recession.

Easy enough to understand the problem, but I am surprised that a solution can not be agreed on. Would not farmers be better off by simply agreeing on a quota? Perhaps it is too competitive a market. Regionally, quotas might be possible, but market prices might be set globally.

And where did we get the idea to drink cows’ milk anyway?

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One Comment

  1. The farmers are getting ripped of by big buissines.
    They should sell direct to shops. People. Cats. And whoever else likes milk.

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