Agriculture Workshop Comment Number: AGW-13820

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Comment Number: AGW-13820

Sent: Tuesday, December 29, 2009 2:09 PM
To: ATR-Agricultural Workshops
Subject: Fw: Fwd: cdfa

Hearing Panel of CDFA                                                                                                        11-10-09
We are writing in support of incorporating the Calif dairy average cost of production quarterly figures into the California milk pricing formula.We are asking for this to rectify the error of only using the average prices from CME.The CME is only a minimal clearing house for products of up to 30 days from manufacturing.The CME is also a publicly traded stock on the New York Stock Exchange so that any major milk handler could own significant shares in it which could influence the results.Anything that has aged over the 30 days is not accountable in the pricing formula except to highly depress the announce price or highly inflate the price.There seems to be no stability for any length of time in the prices that are in the in between pricing zone so we are asking that another component be added to the formula to stabilize our minimal price which would be the average cost of production which would help alleviate these wild price swings that we the independent businessman are expose to.The processing side has their make allowance yet they espoused free market for us milk producers and have their costs covered in depressed times in the meantime.We commend the dairy women for their courage to represent us the independent businessmen of dairy producers and their wives and family.
Walt&Arnold Kessler

Updated April 7, 2016

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