Larry how large are these dairies???? They have had minimum pickup requirements out here for years. So if the really small dairies did not produce enough to be worth picking up they had to pay and extra fee or get dropped. IRC it takes around 40 Holstein cows to meet the requirements. IRC it was 8000 lbs. minimum daily pickup. Some cheese plants would allow every other day pickup to get larger qualities.
Fact of life is that fluid milk consumption is flat to falling. Cheese consumption has grown and helped out a lot. So your demand is finite within a range of growth. On the production side producers have been acting like there is no limit to the demand. Doubling or tripling herd sizes with little thought to how they will market the extra milk.
Ten years ago here, North-East Iowa, the "small" herds were 100 cows. Now that number is 200-300. With the majority of the real serious diaries pushing 500-1000 head. There are not enough small producers quitting to offset the increased production from the larger diaries.
The dropped price has not seemed to slow down the producers much yet. So the processors are "picking" the diaries they will buy from. I will guarantee you the ones still being picked up are larger producers with good quality. Anything out of line and your not going to be selling milk long now.
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