CDFA Sec. Karen Ross with CDC Board & Staff

(From Left to Right: Johnny Tacherra, Joaquin Contente, Karen Ross, Lynne McBride, Joe Augusto, Loren Lopes, Scott Magneson, Joe Melo, George Davis)

California Department of Food and Agriculture (CDFA) Secretary Karen Ross spoke to more than fifty California Dairy Campaign (CDC) and California Farmers Union (CFU) members on Wednesday, March 28^th in Turlock, CA.

“Last Friday, the price of cheese on the Chicago Mercantile Exchange (CME) dropped significantly and dairy producers throughout California are struggling because producer prices do not cover production costs,” explained CDC Executive Director Lynne McBride. “We commend Secretary Ross for meeting with our members to discuss what actions CDFA can take to sustain dairy operations statewide. We urged her to reform the dairy pricing formulas to account for the dairy producer’s rising cost of production.”

“Under the current pricing formula, the 4b or cheese price is more than $2.00 per hundredweight below the price received in surrounding states,” stated CDC President Joe Augusto.  “CDC has joined with other dairy organizations to call on CDFA to change the state dairy pricing formula so that California dairy producers are paid a fair value for the milk they produce,” explained Augusto. “The current 4b formula is causing dairy coalition families to lose $26 million per month and $300 million in 2011 alone. Secretary Ross is looking for input about how the dairy pricing system in California can be improved and we appreciate her efforts to reach out to producers.”

CDC joined a coalition of organizations including California Dairies, Inc., the Dairy Farmers of America – Western Area Council, Land O’Lakes, Inc., the Security Milk Producers Association, the Milk Producers Council, and the Alliance of Western Milk Producers to call on CDFA to amend the 4b pricing formula so that it incorporates the true value of whey in the market.