Minnesota-Wisconsin price

Minnesota-Wisconsin Price

The Minnesota-Wisconsin Price (MW Price) is a significant economic indicator in the dairy industry. It is a weighted average of the prices paid for manufacturing grade milk in the states of Minnesota and Wisconsin. The MW Price is used as a benchmark for pricing milk throughout the United States.

History

The MW Price was established in the 1930s as part of the Agricultural Marketing Agreement Act of 1937. This act was designed to stabilize milk prices and ensure a consistent supply of milk for consumers. The MW Price was chosen as a benchmark because Minnesota and Wisconsin were, and continue to be, major milk-producing states.

Calculation

The MW Price is calculated each month by the United States Department of Agriculture (USDA). The USDA collects data on the prices paid for manufacturing grade milk in Minnesota and Wisconsin. This data is then used to calculate a weighted average price.

Impact

The MW Price has a significant impact on the dairy industry. It is used as a benchmark for pricing milk throughout the United States. When the MW Price increases, farmers receive more money for their milk. Conversely, when the MW Price decreases, farmers receive less money for their milk.

Controversies

There have been some controversies surrounding the MW Price. Some farmers argue that the MW Price does not accurately reflect the cost of producing milk. They argue that the MW Price should be adjusted to take into account factors such as feed costs and labor costs.

Future

The future of the MW Price is uncertain. Some industry experts believe that the MW Price will continue to be a major factor in the dairy industry. Others believe that the MW Price will become less important as other pricing mechanisms are developed.

See Also

• Dairy Industry
• Agricultural Marketing Agreement Act
• United States Department of Agriculture

References

• United States Department of Agriculture
• Agricultural Marketing Agreement Act
• Dairy Industry in Minnesota and Wisconsin