Dairy Producers Nationwide Agree on Need for Inventory Management
Consensus Reached During Major Dairy Meeting in Chicago, IL

TURLOCK, CA (July 23, 2010) –Dairy producer organizations representing tens of thousands of dairy producers from around the country came together in Chicago, IL, this week and agreed on the need for an effective nationwide dairy inventory management program. California Dairy Campaign (CDC) President Joe Augusto represented CDC and California Farmers Union (CFU) during the dairy meeting that included representation from the Holstein Association, Land O’Lakes, Dairy Farmers of America, National Farmers Union and other organizations.

“This week’s meeting proved that there is widespread consensus among dairy producers for an effective federal inventory management program,” stated President Augusto. “CDC has long called for a nationwide inventory management program and now dairy organizations from around the country are working together to achieve this important goal that will provide income stability for dairy producers in the future,” added Augusto.

“The Dairy Price Stabilization Act is the best way to establish a successful inventory management program that is fair to producers and will balance milk supply with market demand,” stated Augusto. “We thank the organizers of this week’s meeting including the Milk Producer Council (MPC) and the Holstein Association and look forward to continuing to work with dairy organizations from around the country to pass an effective inventory management program into law.” Augusto concluded.
CDC and CFU strongly support passage of the “Dairy Price Stabilization Act” introduced by Rep. Jim Costa, D-Calif., that would establish an inventory management program to balance milk supply with market demand. The legislation would enable individual dairies to choose to either maintain their current production level (plus an allowable year-over-year growth rate based on market conditions) or expand their production and increase their share of the market. Dairies choosing to expand would pay a fee during the first year of expansion which is paid to those dairy farmers who choose to maintain their current share of the market.

CDC and CFU continue to call on lawmakers to take additional actions to improve producer prices and prevent another crisis including: increasing the dairy safety net to account for substantially higher feed prices as well as rising energy and other input costs; implementing fair tariffs on unregulated imports of concentrated dairy solids that are displacing demand for US produced milk; and mandating effective oversight and market transparency in dairy sales.
The California Dairy Campaign (CDC) is a grassroots organization of dairy farmers who are working to encourage lawmakers and the dairy industry to be more responsive to the needs of the family dairy farm in California. The CDC is a member organization of the California Farmers Union (CFU), which represents more than 1400 family farmers and ranchers of all commodities throughout California. CFU is the state chapter of National Farmers Union, which represents more than 250,000 farmers nationwide.