By E. W.
Lang
Block cheese was up six cents this week to close
at $1.07 per lb. Five-hundred lb. barrels were up 5 to close at $1.05, and
butter lost four cents to close out the week at $1.14 per lb. Non-Fat Dry Milk
lost four cents to close at 81 cents per lb., and dry whey was steady at 39
cents. At this moment, May Class IV Milk is $10.05 per cwt. So at least there's
not a nine starting the number, but it was an 18 shortly after the first of the
year.
I think it was twenty years ago that dry whey was
17 or 18 cents. It was stored in Kansas City caves by the Commodity Credit
Corporation, and owned by the Federal Government. They basically said,
"Come and get it. If you use it for anything other than human consumption,
you can have it." So was the legacy of the old milk price support system
as I remember it.
Here's another legacy, former President Nixon got
significant illegal contributions from the dairy industry during His 1972
campaign. I mention this so that as we assign blame for our current dairy
situation, we can best decide who among us should cast the first stone.
It seems that every effort to stabilize milk
price has a cost, fairness or law related downfall, even Canada's. Up there
it's expensive to expand by even one cow, and getting a start is financially out
of the question for most anyone of modest means, which is almost everyone. Down
here, we made illegal Nixon campaign contributions and then had a 2003 - 2010
herd retirement program class action suit that was settled for $220 million
just last year.
Our democracy and somewhat free market economy is
often regarded as the worst economic model and system of government there is or
ever was, except for every other system of government and economic model used
anywhere or at any time in history. More on that later.
At this writing there wert and art several closed
down slaughter houses around the country, and it's hard to keep track. I fear
for the major facilities that take in spent dairy cows, or even perfectly
healthy, young, good typed, well bred, high producing registered dairy cows
designated for slaughter. Let's hope they remain open at full capacity.
Most market cows at Premiere in Withee,
Wisconsin, were 41 to 46 cents this week. They were 20 cents higher than that
in Turlock, Calif., and lets hope prices don't crash because a major facility
has to close over the Covid.
There are a lot of cows that will need a terminal
in the next week or so. Dairy cooperatives and handlers are limiting and
reducing volumes of milk they are willing to pay market price for in many of
the United States. And some very large herds are formulating exit plans with
their lenders.
More good cows slaughtered faster means better
milk prices sooner, or so I would hope. But with our democratic system of
government and somewhat free market economy, who knows for sure? The one thing
certain is that our system is never cheap, equal or fair to all involved.