Gone are the days before 1983 when dairy producers could rely on a milk support of 13.50 dollar/ cwt. The milk support number was nearly 80% of what was called parity or near the cost of producing milk with a margin. As a general rule, dairy producersspent half of their milk check to cover operating expenses and the other half could be left in the checkbook and used for such things as capital purchases. After the 80's, the price support was lowered and milk became more volatile. Milk price flucluations ramped up in the 90's with huge changes running wild after the turn of the century. This unpredictable bounce creates a budgeting nightmare for dairy producers, and worst yet, for the businesses that serve the industry and rely on regular payments.
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