Well its not just any organization... the organization's sole purpose is promotion (or at least that's what I gather from the name, National Fluid Milk Processor Promotion Program) - and the internet happens to be a damn good place to promote, especially on a memorable domain like milk.com. And $110M a year revenue over 10 years is $1.1B revenue, and I think milk.com would probably still be relavent and valuable 10 years out. So $10M of $1.1B doesn't seem so bad at all.
Assuming, of course, that their business model predicts that over the course of those 10 years $10M extra profit will be made from having the domain milk.com.
I have no idea about the milk business, especially not its promotion. But I would imagine that few people would not spend as much money on milk because this organisation does not own the domain 'milk.com'.
It's more likely to be bought by a corporate wanting a pretty memorable domain.
Perhaps the domain holder is from the Magrathean School of Business Administration, so his strategy is to go into hibernation until his customers can afford the product...
He doesn't say they will, he doesn't even say they should. He's just saying that he's not selling for less, which can be understood as he's not selling, period.
Or maybe he's not interested in selling. But to make him interested in selling, he's got a number that might get his interest. It's a supply and demand thing. He's not supplying, but if you demand at a high enough price, he just might. Maybe. Because he likes his domain.
