In orders that have tried shipping requirements, milk not actually needed for class I use has been shipped to class I buyers and then returned right back to original sellers for use in manufactured dairy products just so the manufacturing plant can meet the paper requirements. I product lines just to meet qualification requirements. These sorts of problems seem to be greatest in the markets that have large amounts of milk for manufacturing, and one could argue that these are the markets in which tighter standards are most needed. Another mechanism that has been used is the call provision. In orders that have this provision, when the Market Administrator determines that insufficient milk is flowing to class I buyers, a call on milk from manufacturing handlers is issued, in essence a specific and short term shipping requirement.
Milk does more under a call, but there has been dissatisfaction with such provisions.
As with fixed shipping requirements, inefficient milk movements may occur. In addition, over order prices are often sharply curtailed when the Administrator exercises the call provision. Furthermore, Market Administrators may dislike having to exercise such power, as such decisions are usually controversial. Another stick approach that has been suggested is that manufacturing plants should simply be excluded from participating in the order pool. Instead of receiving equalization payments from the pool on all of their milk supply, they would be treated like producers and receive the blend price only on shipments to class I plants.