I have been a Dairy Nutrition Consultant for 25 years in western Pa. While tracking my customers production, components and feed efficiencies I began analysing the milk price volatility. Over the last ten years I have put a lot of thought what causes the volatility and what changes were needed to stabilize the price while still sending the proper market signals to keep production and consumption in near perfect balance.
Harry Stugart
What will this system accomplish?
Stabilizes the price.
Creates market based price discovery in all areas.
Creates market based differentials between areas.
Encourages milk products to go to highest value.
Stability allows long term contracts between processors and retailers.