What is the term used for the milk price that dairy marketing cooperatives negotiate on behalf of their producers?

The term that refers to the price negotiated by dairy marketing cooperatives on behalf of their producers is known as the "Base milk price." This price serves as a foundational rate for milk in a given market, determined through various factors including supply and demand, processing costs, and prevailing market conditions.

This base price can be affected by additional premiums or deductions, such as quality adjustments or processing fees, but the primary function of the cooperative is to advocate for a stable and fair base pricing structure for its members. The concept of a base price is crucial as it directly influences the income that dairy farmers receive for their milk, ensuring they are compensated effectively for their production efforts.

The "Super pool premium" is an incentive based on exceeding production levels rather than the foundational price itself. "Market adjustment price" and "Processing fee" also refer to different components of milk pricing structures, but they do not encapsulate the overarching price negotiated for producers in the way that the base milk price does.