Home Current Issues
Current Issues
CDC Urges CDFA to Increase Dairy Producer Prices PDF Print E-mail
Written by Administrator   
Wednesday, 22 May 2013 10:50

CDC Urges CDFA to Increase Dairy Producer Prices

 

SACRAMENTO, CA (May 20, 2013) – California Dairy Campaign (CDC) Executive Director Lynne McBride testified yesterday before the California Department of Food and Agriculture (CDFA) calling for an increase in the 4b or cheese milk price to bring it closer to prices paid in other states.

 

“According to data from CDFA, California lost 105 dairies in 2012, more dairies than were lost in the devastating year that was 2009,” McBride testified. “Dairies that have been in operation for generations are continuing to close their doors due to the fact that prices paid to California dairy farmers are significantly below prices paid in other states,” she testified. In the last five years 400 dairies have exited across California.

 

“The need for a price adjustment is clear. Dairy operations cannot continue to sustain chronic losses while there is considerable profitability experienced further up the food chain,” McBride testified. During the hearing, CDC provided data that showed the widening gap between the price paid to dairy producers and the retail price for cheese.

 

CDC joined with dairy producer organizations and cooperatives calling for CDFA to increase the 4b or cheese price so that it reflects 80 percent of the whey value paid in the federal milk marketing order system. Under the California pricing system the price paid to producers for whey is capped, while in the federal orders it more closely tracks the market value for whey.

 

“Alignment with the federal order is the only way to end the inequity in our state pricing system,” McBride testified. CDC applauded the passage of the “California Milk Marketing Order Act” in the farm bill last week because it would enable California to retain its quote system under the federal milk marketing order system. The legislation was introduced by Representatives David Valadao, R-21, and Jim Costa, D-16, and cosponsored by all California members of the House Agriculture Committee.

 

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.
 
CDC and CFU Call for Passage of California Milk Marketing Order Act PDF Print E-mail
Written by Administrator   
Friday, 22 March 2013 11:55

TURLOCK, CA (March 21, 2013) – California Dairy Campaign (CDC) President Joe Augusto and California Farmers Union (CFU) President Joaquin Contente called on Congress to pass the “California Milk Marketing Order Act” introduced today by Representatives Jim Costa, D-16, and David Valadao, R-21. The legislation would enable California to join the Federal Milk Marketing Order (FMMO) system while continuing its state quota system.

“Last year California lost 105 dairy operations across the state amounting to a greater number of closures than occurred during the devastating price collapse of 2009,” stated CDC President Augusto. “The price paid to California dairy producers continues to be significantly below prices paid in the federal order and as a result, far fewer dairy operations exist in our state today and many more are struggling to remain in business,” explained Augusto. “The only way to restore some equity for dairy producers in our state is by joining the federal milk marketing order system,” he concluded.

“According to state data, it costs more than $20 per hundredweight to produce milk in California and yet prices paid to producers in January amounted to just $16.60 per hundredweight,” explained CFU President Contente. ““We have collected hundreds of signatures from producers around the state in support of legislation to enable California to join the federal order and retain our state quota system,” he added. “By joining the federal order system, we can bring our prices into alignment with prices paid to producers in the federal orders and improve the outlook for dairies in our state,” he concluded.

California’s Class 4b or cheese price continues to be well below the comparable federal milk marketing order (FMMO) Class III cheese price, amounting to a $2.30 per hundredweight difference in January of 2013. The accumulated losses to producers due to the inequity in the California state pricing system now total more than $800 million since January 2007.

Comprised of more than 1400 farmer and rancher members, CFU advocates policies at the state and national levels on behalf of its membership throughout California. 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. CDC is a member organization of CFU which is a state chapter of National Farmers Union (NFU). NFU represents more than 250,000 members nationwide. NFU works to protect and enhance the economic well-being and quality of life for family farmers, ranchers, and their communities.