Posted 1/29/2019 15:56 (#7281965 - in reply to #7281604) Subject: RE: Class 3 milk
Northeastern Pa.
The dairy dilemma is a vicious cycle. When milk prices go down cows are cheaper to buy so the farmer buys a few more cows to produce more milk to make up for the low price. That's opposite of what big business does. Example: If the demand for baby diapers go down then production lines go down until the demand goes back up. This saves the company money short term vs. spending money to let inventory build up in the warehouse. The same holds true for commodities when the price goes down we plant a few more acres thinking we will spend our way out of the problem. The cycle doesn't end until we run out of money to continue the cycle. Like it or not we farmers are the only ones that can end the cycle one way or the other.
Class 3 milk
