Contents 1 Introduction 2 Prices for Farm Milk and Beverage Milk Products in the United States 3 Farm Prices versus Plant Prices versus the Cost of Milk 4 Prices in the Northeast 5 Processor Prices for Farm Milk in Northeast Markets 6 Retail Price Response in Select Northeast Markets 7 A Special Factor Affecting Retail Prices in Northeast Markets 8 Summary 9 Additional Resources 10 Author Information

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Contents 1 Fundamental Reasons for Price Volatility 2 Moderating Price Volatility 3 Mechanisms to Help Reduce Volatility 4 Bottom Line… 5 Sidebar 6 Author

Fundamental Reasons for Price Volatility

Milk prices have been volatile for more than a century. Much of that volatility was suppressed from the mid-1940s until the end of the 1980s, but the sources of that volatility have always been present and are now …

Contents 1 Introduction 2 What is Low SCC Milk Worth? 3 The Carrot or the Stick? 4 The Future of Milk Quality 5 Authors

Introduction

Any milk producer is aware that the U.S. legal limit for somatic cell count (SCC) in raw milk is 750,000 cells/ml. Most producers are selling milk well under the limit. In 2003, the DHI national average was about 319,000 cells/ml with considerable …

Contents 1 Introduction 2 Product Price Formulas 2.1 Product Price Series 2.2 Yield Factors 2.3 Make Allowances 2.4 Pricing Components 3 Economic Formulas 4 Survey of Unregulated Milk 5 Only Pool Differentials 6 Futures Markets 7 Spot Auctions for Milk 8 Summary 9 Author

Introduction

Discovering the “value” of milk in the market place has always been troublesome. Prior to about 1916 milk dealers were better informed …