MPC Supports Pan's California Milk Pricing Legislation

By CnAgri Print

The Milk Producers Council's Board of Directors voted to support AB 31 (Pan), a bill that would provide changes to the way California calculates prices for milk produced in that state. The bill was introduced this week by California Assemblyman Richard Pan (D-Elk Grove/Galt/Lodi). Western United Dairymen, a fellow dairy farmer trade association based in Modesto, Calif., worked with Assemblyman Pan to get the bill introduced.

AB 31 would specifically address the methods used by the California Department of Food and Agriculture in calculating a minimum price for milk that is produced in California and sold to state cheese manufacturers. For the past couple years, California抯 dairy families have seen a growing gap between the Class 4b price announced each month by CDFA and the price cheese manufacturers around the country are paying for their milk.

"This bill creates an opportunity for the California Legislature to do what CDFA has been unwilling to do: provide California dairy families with a fair price that is reasonably aligned with prices paid for milk throughout the country," said Rob Vandenheuvel, MPC's general manager. "As our dairy farms face record high feed costs, we cannot afford to have CDFA continue this unjustified practice of discounting California's milk. We greatly appreciate Assemblyman Pan's willingness to bring this important debate to the California Legislature."

Since 2010, the California Class 4b price has averaged $1.70 per hundredweight below the Federal Order Class III price, which is the benchmark price for milk being sold to cheese manufacturers in much of the U.S.