Minnesota Milk and Wisconsin Dairy Business Association (DBA) began a Federal Milk Marketing Order (FMMO) education series on Tuesday this week to explain issues within FMMOs causing negative PPDs. As reported and summarized by Dave Natzke at Progressive Dairyman (March negative PPDs continue to climb out of 2020 depths), Minnesota Milk and DBA contract economist Dr. Marin Bozic identified at least six major reasons driving PPDs, and they might not be what you think.
A group of dairy state trade associations, MMPA, DBA, as well as Iowa State Dairy Association, Nebraska State Dairy Association and South Dakota Dairy Producers, are meeting to identify more issues for education going forward. Future topics will likely include:
- This week – Classified milk pricing and PPDs (YouTube)
- Paper #1: A Working Paper examines the causes of the negative PPDs and policy options which could change the outcomes.
- Paper #2: And an Information Letter looks at the negative PPDs in seven Federal Orders for the month of March, 2021.
- Review of FMMO formulas and make allowances
- Advanced pricing – origins, hedging and need in 2021
- Creating a “hedgeable” milk pricing system
Other topics to be identified later
Be the first to comment