Demand Audits of Cheese/Butter Cold Storage Inventories!
Call Dairy Programs Office of Chief Economist John Mengle 202-720-4664
Whether you are responsible of taking care of 100 cows or 10,000 cows, at the end of the day we are accountable for their well being and production. As business owners, we are accountable to our banks, co-ops, and government to report accurately our numbers of production and income. We are subjected to audits from any of these entities to report accurately at our expense. After all our compliance, our product is recorded and documented. The milk we produce then leaves our dairies and our end price is left at the hands of those who purchase and manufacture our product for profit.
I ask this very simple question. Why are those who purchase our product and have the responsibility to report those inventories, (Cheese/Butter), to the government (NASS Cold Storage) NOT required to have scheduled and mandatory audits? No audits, none…ever! Even a slight error in this reporting can have an indirect affect on our milk price. (Some of these companies have reported record profits this past quarter).
It then brings me to ask another question, who is opposing these audits? If they are following proper reporting procedures as set by the guidelines then I do not see why there would be opposition to comply with audits.
I am urging each of us to contact legislation, co-ops, and industry representatives to demand that reported government inventories have mandatory audits from an outside agency. I am grateful for MILC and other government assistance. I would like to see some of that money go towards these audits. It would assist in supply vs. demand triggers that eventually hinder our bottom line.
At the end of the day our price, as in any business, is based on market demand. We must work towards the stabilization of our supply to be sync with demand. I don’t know of any business that wants the burden to produce more to remain unprofitable.
Call for mandatory audits of Cold Storage inventories!
Tony Martin Dairy