Posted by Melissa Bravo on August 17, 2018 at 10:12 am
Hi Robert,
Thank you for presenting this. I am drawn to your summary observation, "If dairy farmers around the country were to reduce production by 2%, the all‐milk
price would rise significantly, and the residual price would climb. If the market price reached $20, the residual price would also be $20. At that point, all
prices would rise to the higher market price."
Yes it is complex, but if we could look at this as the grand prize - what you have above - , and a monetary reward to all existing and new producers to agree on doing this - could we identify a trigger point where supply management is mandatory - and the response as simple as leaving cows open an additional month or two; halting heifer retention and/or staggering breeding dates and retaining older cows (but maintaining a quality-quantity approach) i.e. which pushes down the national lactation curve. Could we get there? What would it take to get there?
Posted by Melissa Bravo on August 17, 2018 at 10:12 am
Hi Robert,
Thank you for presenting this. I am drawn to your summary observation, "If dairy farmers around the country were to reduce production by 2%, the all‐milk
price would rise significantly, and the residual price would climb. If the market price reached $20, the residual price would also be $20. At that point, all
prices would rise to the higher market price."
Yes it is complex, but if we could look at this as the grand prize - what you have above - , and a monetary reward to all existing and new producers to agree on doing this - could we identify a trigger point where supply management is mandatory - and the response as simple as leaving cows open an additional month or two; halting heifer retention and/or staggering breeding dates and retaining older cows (but maintaining a quality-quantity approach) i.e. which pushes down the national lactation curve. Could we get there? What would it take to get there?