The value of milk? Buy Futures.

Dairy’s Secret Plan: Screw the Consumer

If you’re a regular Notmilk reader, you’ve learned
that milk does not do your body any good. If you’ve
yet to be weaned, prepare to pay the price at the
supermarket checkout counter.

Israelis and Arabs kissing and making up?
Yankee fans and Met fans holding hands?
Democrats and Republicans in meaningful relationships?
One dairy farmer working with another?
When hell freezes over, perhaps.

The improbable has happened. Not only are two
dairymen sharing the same opinion, but thousands
have signed onto a new agenda called CWT or Co-ops
Working Together.

In CWT, farmers are being compensated to reduce
or eliminate their herds by sending some or all
of their cows to slaughter. They reason that the
fewer cows there are, the less milk there will be
and the greater will be the retail cost of milk
and dairy products.


Ding dong…Why not just discontinue the genetically
engineered bovine growth hormone which would
accomplish the same industry-wide goal?


The rocket scientists are still working for NASA.

The economic hardships currently being shared by dairy
farmers will soon shift to consumers. Since so
many products include milk and dairy additives,
prepare yourself for runaway inflation to be fueled
by the food industry.

The largest dairy-farm lending bank is Wells Fargo.
Bank economists estimate that dairy milk futures
will double by this time next year as a result of
CWT. Expect to see the wholesale price of milk soar
from $11 to $23 per 100 pounds during the next
12 months.

Michael Swanson, Wells Fargo & Co. economist expects
higher prices for dairy commodities. In June of 2009,
many supermarkets are selling butter for under $2 per
pound. By next year, Swanson expects to see the
wholesale price of butter at $3.94 per pound and
cheddar cheese at $5.10 per pound. Barrels of cheddar
are presently trading in the $1.10 per pound range.

So, vegans and dairy consumers alike, you’re now privy
to the industry’s inner-sanctum strategy. What will you
do with this information? Play the futures market?
Stock up on milk powder? Keep a cow in your backyard?

We are in for harsher times than the one we are now
living in. It will soon become time for dairy farmer
tears to morph to laughter. Cheese omelette eaters?
The yolk will then be on you.

Robert Cohen

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