The findings of a five-month study indicate that a properly written federal milk marketing order for California would provide a regulatory structure that would potentially result in higher farm gate prices, according to three milk cooperatives, which in turn would benefit dairy families in the Golden State.
The study, conducted by Drs. Mark Stephenson of University of Wisconsin-Madison and Chuck Nicholson of Penn State University, was commissioned byCalifornia Dairies Inc.,Dairy Farmers of America Inc. andLand O’Lakes Inc.The three cooperatives, representing about 80 percent of the milk produced in California, collectively funded the comprehensive modeling study to examine the issues and benefits of replacing the California state milk marketing order with a federal milk marketing order.
After a thorough review of the study results, including possible consequences and opportunities, it was agreed by the three cooperatives to continue working toward a change in the regulatory structure.
Staff from the three cooperatives will begin to draft federal order language to initiate the process.
The cooperatives will plan a series of explanatory sessions for its members to share the results and receive input on how best to move forward on possible implementation. PD
—From California Dairies news release
