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Study Results Suggest Federal Milk Marketing Order Could Benefit California Dairy Producers

Jun 18, 2013

VISALIA, Calif. — The findings of a five-month long study commissioned by California Dairies, Inc. (CDI), Dairy Farmers of America, Inc. (DFA), and Land O’Lakes, Inc. (LOL) 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, which would benefit California dairy farm families. The three cooperatives, representing approximately 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.

The study was conducted by Dr. Mark Stephenson, University of Wisconsin-Madison and Dr. Chuck Nicholson of Penn State University. After a thorough review of the study results including possible consequences and opportunities, it was agreed upon 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. CDI, DFA, and LOL also will be holding a series of explanatory sessions for its members to share the results and receive input on how best to move forward on possible implementation.

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About California Dairies, Inc.

California Dairies, Inc. is the largest member-owned milk marketing and processing cooperative in California producing 40 percent of California’s milk. Co-owned by more than 400 dairy producers who ship 16 billion pounds of Real California Milk annually. California Dairies, Inc. is a manufacturer of quality butter, fluid milk products and milk powders. In addition, California Dairies, Inc. is the home of two leading and well-respected brands of butter – Challenge and Danish Creamery. California Dairies’ quality dairy products are available in all 50 United States and in more than 50 foreign countries.