Initially to stabilize the market. What was happening is the price of milk would tank and a lot of farmers turned their livestock into meat and left the business, which then resulted in a production shortfall, and skyrocketing prices, and the cycle began anew. So they came up with a plan to buy excess milk when prices were low, turn that into a higher value, longer lasting commodity to sell later. But once you introduce that by the government instead of private companies, removing it becomes a political maneuver. So it could only go up, and prices were kept artificially high.
Initially to stabilize the market. What was happening is the price of milk would tank and a lot of farmers turned their livestock into meat and left the business, which then resulted in a production shortfall, and skyrocketing prices, and the cycle began anew. So they came up with a plan to buy excess milk when prices were low, turn that into a higher value, longer lasting commodity to sell later. But once you introduce that by the government instead of private companies, removing it becomes a political maneuver. So it could only go up, and prices were kept artificially high.