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SE WI | The problem is what do we do with the rest of the product? The skim milk just sits around with no demand for it. It's not an issue with butter production efficiency. The price of milk is certainly helped by the high Butterfat demand but it's being restrained by the massive amounts of skim milk powder on the market.
The Canadian decision to lower the powder price was a consequence of this imbalance. They want to increase their Butterfat production but also needed an outlet for the powder. Their strategy to lower the powder price makes it economical to move that powder through the processing system. It also made it uneconomical for the US powder (ultrafiltered milk) to compete in the Canadian market.
At least, this is how I am understanding it at the moment. | |
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Dairy farmers. Who's getting deductions off your checks?
