Dairy Pricing Hearing Set for Next Month

Brian GermanDairy & Livestock, Dairy and Livestock, Industry

The U.S. Department of Agriculture (USDA) is moving forward with the process for reforming the Federal Milk Marketing Order (FMMO) system. August 23 is the date that has been set for the dairy pricing hearing to begin in Indiana. The hearing process will proceed both in person and online. Time slots will be available each Friday beginning September 1 for industry members to testify virtually. Nearly two-dozen proposals have been submitted for review by a variety of industry groups including the International Dairy Foods Association (IDFA).

Dairy Pricing Hearing

“We plan to provide compelling, fact-based arguments supporting IDFA’s two proposals that were crafted in the best interest of the full dairy supply chain,” said Mike Brown, IDFA chief economist. “We are grateful that both of IDFA’s proposals were accepted by USDA as part of the hearing. We go into this process with the same goal we’ve had all along—unify the industry around ideas that are in the best interest of the full dairy supply chain. IDFA members across the dairy industry want to see milk pricing policies that support all parts of the supply chain, to ensure the industry’s continued success and growth.”

The dairy pricing hearing will consist of testimony covering subject areas including milk composition, surveyed commodity products, Class III and IV formula factors, base Class I skim milk price, among others. Proposals have also been submitted by groups such as the National Milk Producers Federation (NMPF) American Farm Bureau Federation, and the California Dairy Campaign. Summaries of the proposals have been made available in the USDA announcement.

“Dairy farmers nationwide are grateful that USDA is moving forward by including the full scope of NMPF’s proposal to guide the dairy industry forward as it modernizes the Federal Milk Marketing Order system,” NMPF Board Chairman Randy Mooney said in a press release. “Each piece of our proposal, from returning to the ‘higher-of’ Class I mover as soon as possible, to updating both Class I price differentials and manufacturing cost allowances, has been crucial toward building that consensus, and all components of our plan are critical to a successful update to this important program.”

Brian German
Ag News Director / AgNet West