Moo

Did you know that today is World Milk Day? Neither did I until I heard it on the Country Hour today. I feel sorry for dairy farmers, they've copped a kicking in the last couple of years, with de-regulation, feed costs trebling and more during the drought. These are rough figures drawn from an inefficient memory bank, but the farm gate price for milk has dropped by an average of about 45% since the pocket protector brigade got the opportunity to set prices. Still, there's a little bit of hope for some of them; Woolworths national supply contract is up for tender again at a time when market forces are in favor of suppliers. National Foods have the contract now (at 23c/litre, down from a national average of 45c/litre prior to de-reg.) but there is talk of splitting the tender up into regional contracts.
Whether this is a good thing is yet to be seen, areas like northern Queensland, which have relatively few suppliers may see their farmers being able to command a better price, because of the cost of transporting in any alternative. Then again, reducing the size and therefore, power of the negotiating group may not exactly make Mr. Woolworths quiver in his boots.
The Woolworths contract is only for 6% of the national market, but may well set something of a precedent for the rest of the market. I hope so.
By the way, seeing that milk is basically an emulsion of 3.8% fat in water with a bit of sugar and some protein mixed in, what is low-fat milk?
A. Water.