Confused about negative PPDs? Expert explains what that number means
Despite negative producer price differentials plaguing the dairy industry in 2020, many people are still confused on what a PPD is and how it affects their milk check.
Marin Bozic, assistant professor of dairy food marketing and economics at the University of Minnesota, was a guest on Dairy Business Association s Dairy Stream podcast and took a stab at explaining the meaning of federal milk marketing orders and PPDs and what to expect of them this year.
FMMOs, which are region-specific, are a collective bargaining tool that ensures a minimum price paid to dairy farmers for their milk. If there were no FMMO, Bozic said, large corporate players like Walmart could artificially lower the value of milk by lowering the buying price of fluid milk.