Last year I entered a question that had no takers and was dropped in
due course.  I would like to put it out again.  Perhaps I directed it 
toward the wrong category of researchers.  The question is #275852 -
"the cream content.....".  I need advice on how to rephrase the
question in order to get a fair review of MY issue - that the public is being
ripped off by a close agreement, if not a conspiracy - to make the
words butter and cream synonoymous with poison. Maybe it has a simple easy 
answer - I just hadn't offered enough?

---

Request for Question Clarification by pafalafa-ga on 08 Mar 2004 19:39 PST

Hello finler-ga,

The federal government routinely collects market price data (retail
prices) for whole milk and 2% milk.  The data makes very clear that
there are consistent and significant differences in the prices of
these two products.  So, I cannot really agree with your statement
that the prices of the whole milk and reduced-fat milk are generally
the same.

If you'd like, I can summarize the federal price data for you, as well
as providing some details on regional differences in prices around the
country.

I do not feel I am in a position, however, to lend any insight to your
contention that the public is being ripped off by the absence of an
appropriate price differential between different milk products.

I am only offering to summarize the available price data for a gallon
of whole milk vs 2% milk, in numerous areas of the country, and for
the past several years.

If that information would suit your needs, let me know, and I'll be
hapy to post it as an answer to your question.

pafalafa-ga

Hi finler,

Your original question was this:

In the production of milk and cottage cheese (and possibly other dairy
products as well) part of the butter fat or cream is removed from the
milk as it comes from the cow.  Milk is sold with an amount of
butterfat or cream remaining as determined by industry standards.  Any
further reduction of the butterfat or cream content results in milk
sold marked as skim (0%),or 1% or 2% butterfat.  The price of cream,
sold as cream, is significantly higher than the price of whole milk. 
Cream, that is not sold in that form to consumers directly, is used
for manufacture of cheese and other products.  Since the value of the
cream taked out is somewhat higher than the skim milk with which it is
replaced the price of the milk with REDUCED CREAM CONTENT should not
be the same as the price of whole milk.  However the practice appears
to be general that the price of milk to the consumer,0%, 1% or
"whole", remains the same.  Generally this is also true for cottage
cheese as well which also comes with varying degrees of cream content.
 My question is WHO IS RESPONSIBLE FOR THIS RIPOFF? WHY IS THIS
CONDITION BEING SUPPRESSED? WHO OR WHAT ARE ARE THE AGENCIES OR
LOBBYIST GROUPS THAT KEEP ALL THE VARIUUS MILK REGULATORS FROM DEALING
WITH THIS INEQUITY?  HAS THIS QUESTION EVER BEEN DEALT WITH IN PUBLIC?
And I also ask is this too hot to handle?

Very simply, the producer (farmer) is paid using "multiple component
pricing" (taking such factors as butterfat, protein, and solids into
account), but once the milk leaves the farm and is dumped into the
pool with everyone else's, the milk pricing becomes one of "use"
rather than components and is sold by weight (milk destined for the
table is priced higher than milk destined to become dry milk powder).
From there, the retailer prices the milk according to market demands
and profit margins.

Following are four links which I hope will explain the complexities of
the dairy industry alittle bit.

1) "This report examines (1) the factors that influence the price of
milk as it moves from the farm to the consumer, (2) the proportionate
breakdown of the retail price of a gallon of milk received by farmers,
cooperatives, wholesale milk processors, and retailers, (3) how
changes in farm and retail milk prices affect the farm-to-retail milk
price spread, (4) how price changes at any level of the marketing
chain relate to changes in prices at other levels, and (5) the retail
prices of the four types of fluid milk?whole, 2-percent (or reduced
fat), 1-percent (or low-fat), and skim (or fat-free)?in selected
markets."
http://www.gao.gov/new.items/d01561.pdf

2) How Do Dairy Farmers Get Paid for Milk? In a Nutshell:
"The price farmers receive for their milk is based upon Multiple
Component Pricing (MCP), Producer Price Differential (PPD), and Plant
Location Deduction. Once these concepts? as well as the provisions of
the Milk Income Loss Contract (MILC) program? are understood, it
should be easier to grasp how that price is determined."
http://www.uvm.edu/~uvmext/publications/agpubs/milkcosts.pdf

3) BUTTERFAT PRICE ? In federal milk orders this is the minimum price
per pound paid for the butterfat content of farm milk. The butterfat
price is calculated from wholesale butter prices minus a make
allowance and divided by a moisture factor. An additional amount
(class price differential) may be added depending the class of use.
CLASS I - The highest priced category in a classified pricing plan.
Includes milk used in products intended for beverage usage.
CLASS II ? This category within the federal order classified system
applies to ?soft? spoonable manufactured products.
CLASS III - Products included in this class under federal orders are
cheeses (other than cottage), evaporated or condensed milk in
consumer-type packaging...
CLASS IV ? Products in this class include butter and milk powder products.

"It should be understood that the terms ?class I milk? and ?class II
milk? have no reference to the quality or grade of milk, but identify
only the use of the milk. All of the milk coming under an order is
grade A. The class II and class III milk used for manufacturing is
sometimes described as the grade A milk in excess of class I needs."
http://www.cpdmp.cornell.edu/CPDMP/Pages/Publications/Pubs/Glossary.pdf

4) MILK PRICES:
http://www.dairyline.com/mprices.htm

The links above give only a small glimpse into the complex dairy
industry, but I hope they will help you to understand why your
question expired without being answered.

Best regards,
hummer

I see four possible problems:

1) Your premise may not be true. Where I live, skim milk is
significantly cheaper than whole milk.

2) This wouldn't be an easy subject to research. Many Researchers
aren't willing to do more than half an hour of research (plus the time
of writing) for a $15 question unless it is something that are
interested in themselves. I believe that answering your question
adequately would take several hours of research at least, and I
wouldn't consider tackling your question for less than $50. (Other
Researchers may differ.)

3) The information needed to answer the question adequately may not be
available on the Internet.

4) You are suggesting that there is a conspiracy afoot to skew the
price of milk and cream in a certain direction. Many Researchers are
leery of answering conspiracy-related questions, because their
experience has been if the answer doesn't support the customer's
viewpoint then the answer will get a negative rating and/or a demand
for a refund. I'm not saying you would do this, but it has happened
many times before.

By the way, all Researchers, not just a certain category, have access
to all questions.  I suggest you repost the question at a higher price
and see what happens. If nobody does, then you're out only 50 cents.