By  E. W. Lang

Dry Whey ended the week at 84 cents per lb.  This is an all-time record price that contributes to Class IV milk pricing along with butter which, incidentally, lost 39 cents (13%) this week.

Dry Whey was 75 cents on Jan. 3 of this year, 46 cents a year before that and 31 cents on Jan. 2, 2020.  In 2009, Dry Whey traded for 15 cents per lb.

Some years ago, the federal government had caves in Kansas City full of dry dairy products that were purchased to support farm gate milk prices.  They ended up giving it all away to whomever would take it and not use it for human consumption.  It had very little value at that time, largely because of government intervention in milk pricing.  

The government still intervenes in milk pricing, but in a different way and in a volume-restricted manner.  At that time, every single pound of milk produced by every cow milked by every farmer was supported at 60 percent of parity, and theat base price was adjusted for inflation every six months.  This farm program started with bribes paid to the Nixon White House by milk cooperatives and began to end during President Reagan's first term.  Seriously people, I'm not making any of this up. 

Every cow, every tank of milk and every dairy farmer got a minimum milk price that was linked to a 1914 net income level that was considered to be "at parity."  Parity is the notion that farmers are paid a fair price for their product—one that covers their costs and provides them with a decent livelihood.     

Farmers of that milk price-support era complained because it wasn't enough, and some wanted 100% of parity. Some wanted a Canadian styled quota.  Farmers even drove their tractors on Washington, D.C. in protest.   During one tractor drive the Secretary of Agriculture, Bob Bergland, had to climb out a basement window in order to circumvent the angry farmers on their tractors.  Again, I am making none of this up, though I would grant that few farmers driving their tractors to D.C. probably had cows to milk at home. 

The battle cry was, "We farmers want our freedom and independence!"  But the theme was the same then as today, "We farmers want our freedom and independence, but we really want are higher price supports."  Human nature endures across cultures, across industries and over time.

Block cheese was down one cent at $1.79 per lb. for the week.  Barrels were down seven at $1.74 per lb. 

February and March Milk Futures for Class III, Class IV and the Milk-Feed Index averages for the two months all lost 80 cents to $1.10 this week. 

On an international note, three German retailers aim to stop taking milk from dairies that don't graze for at least five months every year.  They intend to do this by 2030, and there is now some kind of labeling that will indicate animal husbandry levels, perhaps using a series of yellow stars.