United States: Milk pricing and its future

For about 50 years, price supports have been the backbone of the milk and dairy products pricing system. Price supports reinforce the entire price structure for bulk milk sold by farmers either directly to processors or through cooperatives. Although, due to a decrease in the role of the price support programme, milk price volatility has increased, which is why the dairy industry will continue to evaluate future price risk management. The milk pricing system has been responsive to changes in