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Milk pricing during the pandemic continues to cause confusion and concern among dairy farmers, many of whom saw their milk checks shrink.

Dr. Marin Bozic, assistant professor in dairy foods marketing economics at the University of Minnesota, is an expert on so-called producer price differentials or PPDs, which became a four-letter word for some farmers. On a new episode of the Dairy Stream podcast, Bozic talks about the usefulness of the Federal Milk Marketing Orders, the causes of negative PPDs and how to solve issues related to pricing in the future.

Compeer Financial sponsored this episode.

Listen here.

Podcast breakdown:

  • 1:40: Why FMMO exists
  • 2:30: PPDs defined
  • 3:45: Impact of component value of milk
  • 6:15: Most important factor in negative PPDs in 2020
  • 14:00: Impact of government food programs on PPDs
  • 18:30: How depooling affects price
  • 22:25: What producers can do
  • 26:45: PPD prospects for 2021
  • 34:45: Risks and rewards of FMMO hearings
  • 36:15: Social contract for farmers and processors
  • 42:45: What to watch for this year to indicate positive PPDs