Just 3.2% of Farms Pool Half the Milk in Central Federal Order
Just 78 farms pool half the milk in the Central Federal Milk Marketing Order, according to the December Marketing Service Bulletin from the Central Marketing area. The 78 farms account for just 3.2% of the 2,441 farms that pool milk in the order.
“This proportion has dropped significantly since the inception of the Central Order in 2000 when approximately 10% of the farms marketed 50% of the milk,” reports the Bulletin.
“A relatively small number of farms with large milk marketings make up a disproportionate share of the Central Order total. ….Twenty seven of the largest farms (1.1%) accounted for 25% of Central Order marketings during October 2018.”
The Central Order covers all Kansas and Oklahoma and portions of Colorado, Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. In October, 2,441 farms marketed milk in the order. That’s down from a peak of 11,683 farms in June 2001.
Central Order statisticians notes that 172 individual producers shipped more than 1.5 million lb of milk in October, which approximates a tanker load of milk per day. “Although these 172 producers accounted for only 7.05% of the total producers on the Central market, their marketings comprised 69.16% of the milk pooled,” they note.
“Notably, there were 1,192 farms [in October 2018] (down from 5,727 farms in October 2002) which marketed less than 100,000 pounds on the order. These producers accounted for approximately 49% of the farms but less than 4% of the milk marketed,” reports the Bulletin.