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Global milk glut squeezes dairy farmers, consumers

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posted on May, 25 2009 @ 09:22 PM
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Global milk glut squeezes dairy farmers, consumers


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BARNHART, Mo. (AP) -- A collapse in milk prices has wiped away the profits of dairy farmers, driving many out of business while forcing others to slaughter their herds or dump milk on the ground in protest. But nine months after prices began tumbling on the farm, consumers aren't seeing the full benefits of the crash at the checkout counter.

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[edit on 25-5-2009 by LeaderOfProgress]

Mod Edit: Review This Link: Instructions for the Breaking News Forums: Copy The Exact Headline

[edit on 5/25/2009 by semperfortis]




posted on May, 25 2009 @ 09:22 PM
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During the "Great Depression" the government had to step in and heavily regulate the prices of milk in order to keep the milk flowing. There was even a campaign of the government buying milk and then dumping it in order to aid the farmers.

There are so many similarities to our previous depression that it is becoming startling. I day after day see history repeating itself. Though some might not find the price of milk to be indicitive of our economic status, I find it directly linked to our status as a nation and even globally now.

Research milk and the economy. It will be an interesting read to say the least. It makes for a great benchmark comodity.

It is also showing that inflation is getting out of control. People just do not realize that the prices of products should be droping not rising. Yes that includes gasoline and oil.

With that being said, I think we are in some deep POO. This go around people feel too entitled. I hope it's not as bad as it looks, but the proof is showing otherwise.



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(visit the link for the full news article)

[edit on 25-5-2009 by LeaderOfProgress]



posted on May, 25 2009 @ 09:42 PM
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I agree with you friend. All of our home grown products are not selling. People are just not buying as they should be.

We are in a depression.

The similarities between this one and the first one are astounding.



posted on May, 25 2009 @ 09:52 PM
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Not just during the Depression. Do you remember the jokes about 'government cheese'? In the 1980s, they paid dairy farmers to dump their milk. Some of it was bought by the government and turned into cheese.



posted on May, 25 2009 @ 10:15 PM
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A New Zealand company called Fonterra may have been responsible for manipulating milk prices before the glut hit. I can't prove it. This company was involved with a scare in China which involved in the adding of toxic synthetic chemicals to bulk up the milk.

I would not be surprised if this slump results from previous market manipulations.



posted on May, 25 2009 @ 10:21 PM
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Originally posted by Tentickles
I agree with you friend. All of our home grown products are not selling. People are just not buying as they should be.

We are in a depression.

The similarities between this one and the first one are astounding.



Where are the bread lines?



posted on May, 25 2009 @ 10:22 PM
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Originally posted by Jadette
Not just during the Depression. Do you remember the jokes about 'government cheese'? In the 1980s, they paid dairy farmers to dump their milk. Some of it was bought by the government and turned into cheese.




Yep when I was growing up, many of the dairy farmers were subsidized out of business.

Crazy... that was in the 80's



posted on May, 25 2009 @ 10:27 PM
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It's sometimes the simple things people miss when it comes to our economic situation. These simple comodities that we think of as common everyday things can show alot about our economy. As for the bread lines, well the government has a "better" welfare system now that consists of giving people monopoly money to buy groceries with. We probably won't see the same bread lines like before, at least not yet.



posted on May, 25 2009 @ 10:34 PM
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I was just thinking about this yesterday. So many people out of work, everyone has lost at least half of what they'd intended to retire on. Sure a few people have well-paid jobs but everyone else is broke or scared into frugality. but prices are not going down. i thought that that is how capitalism worked. supply and demand. if demand goes down, so does prices. things are less scarce so cost less. so what is going on to to keep prices high? how are they breaking even?



posted on May, 25 2009 @ 11:34 PM
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I find this interesting. I've been hearing a lot about the milk dropping, however, working in the dairy section of a grocery store, I've some to notice the now bi-monthly sheets that come in of rising milk prices.

The same is for pretty much any other product although it is not as noticable or advanced. I manage the baking section as well and I'd say about 90% of the products I have have gone up anywhere from 5-12 cents in the past month or so and it keeps rising.

I definately keep my eye on the milk. It seems to show the trends before they happen.



posted on May, 25 2009 @ 11:54 PM
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The same thing with the dairy's is happening here in Northern California but it has been going on for a few years now. The thing is that when these 3rd and 4th generation farms are being run out of business the co-op's that work for safeway and the like are buying up their herds at rock bottom prices. Most if they are lucky have their land paid for and don't have any mortgages. If not they are loosing there homes too.
The ranch my hub worked on for 14 years had the entire herd bought out by a safeway co-op dairy in the next county. They showed up at the auction here and bought the whole herd of 350 heifer's at the yard by out bidding everyone by 6 grand.
They wanted his herd because his ranch for 14 years running had ALL the awards for the best and cleanest dairy and milk. He even had a letter and a plaque from then Governor Davis.
It isn't just that the price's are being shot down; they are being shot down to run mom and pop's out of business and giving the sole rights over to huge chains that now run the pricing and index for the supply.
Most of the dairy's here have sold their herd's over to them and are now growing grapes for major wineries in the surrounding areas. People in the next county who used to grow apples peaches and various nuts are also pulling up their tree's and planting grapes. So maybe we all just get some cheap wine out of it!



posted on May, 25 2009 @ 11:59 PM
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Dairy cows were slaughtered in the '70s, '80s and '90s.

Cheese was given away by the government.

Milk production is cyclic, subsidized and regulated.

We are not in a depression.

jw



posted on May, 26 2009 @ 12:54 AM
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Originally posted by jdub297
Dairy cows were slaughtered in the '70s, '80s and '90s.

Cheese was given away by the government.

Milk production is cyclic, subsidized and regulated.

We are not in a depression.

jw


Seriously, are you blind to what is happening and has been happening with our economy? We are in a depression. You seem to trust the numbers that are being released by the government. I do not. All productions of all comodities and products are cyclical as they should be. The problem comes into play when a benchmark comodity shows that it is struggling. It may be regulated but only to the affect of aiding corporations, not the private farmer or dairy. How do you figure we are not in a depression? Because the government says so?



posted on May, 26 2009 @ 01:36 AM
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reply to post by LeaderOfProgress
 


Where are the bread lines?



posted on May, 26 2009 @ 01:41 AM
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reply to post by HunkaHunka
 


The bread lines are now called "welfare" and "food stamps" and "access cards". There won't be bread lines as long as those programs exist. Keep your eyes on California for your bread lines. If they continue down the path that they are now, we will soon see bread lines.



posted on May, 26 2009 @ 04:32 AM
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And yet I'm still paying 50% more for milk than I was a year and a half ago.



posted on May, 26 2009 @ 04:59 AM
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Originally posted by sy.gunson
I would not be surprised if this slump results from previous market manipulations.


You will get no argument here I suspected at the time that Fonterra was artificial inflating the price of milk . Our points of view certainly seem to have been validated . Sure Fonterra type company's are needed to support the New Zealand but as a Kiwi I am ashamed of Fonterra . Kiwi farmers are still better then there European and US counterparts thou because they don't suffer from subsidies .

The Supermarkets or Fonterra must be pocketing the difference between the retail price of milk and the shelf price . The creation of Fonterra has certainly proved to be a mistake .

[edit on 26-5-2009 by xpert11]



posted on May, 26 2009 @ 05:06 AM
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People don't want to believe that we were in a recession years ago. Now the powers that be are finally calling it a recession. It is almost like they are treating us like mushrooms. Keeping us in the dark and feeding us manure. We are currently in a depression with now hyper inflation setting in. You see they are sneaky about it now. Instead of outright raising of prices they are instead either lowing the quantity of products in their packaging and or maintaining a price after the demand has dropped.

My oppinion is that the law of supply and demand is officially dead. No longer are products priced according to availability or demand. Even though we have a surplus in so many comodities from oil to grains and now milk, the price is remaining stagnant.

It is alot harder for most people to catch on to the inflation if it is done in a covert manner, or if we are blatantly lied to about the supply of a comodity. This is why the gas prices are rising right now even though we have a global surplus.

What is even more interesting about all of this, is that following "trickle down" economics, the price of products should be so low now that pocket change could feed your family.

I think that the proof of our economic failure is rearing its ugly . slowly but surely. A major devaluation of the dollar is occuring as we speak which in return will cause massive inflation on a scale that dwarfs all other inflation scenarios we have experienced in the past.

As more layoffs occur due to a lack of demand, a larger lack of demand will occur, thus creating more layoffs and further decreasing demand. As it sits right now the price of a new car should be at 1970's level, but it is not.

The government's solution is to "create" jobs. First you must have a demand for the jobs you are creating, with out that all you are doing is trying to save face in the eye of the public. The key problem with the government "creating" jobs comes in the question of "who will pay for the creation of the jobs?". If the government "pays" for the job creation, they will only cause more devaluation of the dollar and compound the inflationary problem.

The only solution that I can see makes sense, is closing down of corporations. Allow the reintroduction of the "ma and pa" buisness and regulate the life out of corporations. By heavy regulating of the corporate farms and other buisnesses that can be "ma and pa" operations, we can in return create more jobs, thus increasing demand. This will also help in the changing of this "disposable" lifestyle we have all become so accustom to. In order to do this the government would have to make all products "user serviceable" and force the parts to be available to the public at a proper price.

Some will say that this idea conflicts with capitalism and free market. In reallity the corporations that have taken over most industries and small buisnesses are the conflict with in the free market system. The corporations are the ones who are who elimate jobs and farms by "modernizing" the work force. In theory we have the technology to live a life of little to no work, but no one would profit from it.

And so I rant. Good times.




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