A milk pool is a
financial pooling system used by
dairy farmers Dairy Farmers may refer to various companies, brand names, co-operatives or trade unions:
* Dairy Farmers, Inc - United States
* Dairy Farmers Pty Ltd - Australia
* Dairy Farmers of America
* Dairy Farmers of Britain
* Dairy Farmers of Canada
...
to ensure that all dairy producers receive similar per-gallon payments for their product at or above a legally regulated minimum. Farmers producing milk "of equal quality and composition" will receive the same amount of per-gallon payment regardless of how their product is utilized. Milk pooling allows farmers to reduce the
financial risk
Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financi ...
associated with the milk market. Milk pooling is usually regulated at the state or province level; however in some countries, for example
Canada
Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
, there exist milk pooling programs that encompass several provinces.
References
Dairy farming
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