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I reviewed the GMP on behalf of my private clients and subscribers, my comments were distributed mainstream which solicited a quick reply from the Milk Producer's Council.  Since then, there has been multiple public references as to my not suggesting alternatives.  You can see the entire dialogue for yourself here.  For the record, I am not against any sort of GMP assuming you fix what is wrong with the system the GMP is built on.  The current FMMO and milk pricing system has specific problems which need to be fixed for any sort of GMP to work. 

Here are the specific fixes:

1) Roll-back a portion of the make allowances to share more of the pricing risk among the supply chain.

2) Replace FMMO’s in some regions with co-op owned MAC’s which can much better send regional balance signals and able to write direct priceXsupply contracts as opposed to what is encouraged by the ‘pool all’ FMMO’s.

3) Require quarterly milk-flow reconciliation by NASS and the inclusion of 100% reporting on dairy commodity price points.

4) Require a quarterly sources/uses report on the who and where of milk pooling.

5) Use the CWT tax to fund a NZ-style export board to actually sell product instead of coddling NFDM exports with the competitor, Fonterra.

Thank you for your consideration and in getting the word out in how to fix what's broke.

-Marvin Hoekema

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Last modified: October 17, 2008