Dairy Farm Income Enhancement Proposals

Stratified Farm Milk Pricing 2018

Submitted by Robert Wellington

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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 allā€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?