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CDI: Study shows federal order would benefit California producers


The findings of a five-month study commissioned by California Dairies, Inc. (CDI), Dairy Farmers of America, Inc. (DFA), and Land O’Lakes, Inc. (LOL) indicate a properly written federal milk marketing order for California would benefit the state’s dairy farm families, according to Marie teVelde, CDI director of communications. Such a federal order would provide a regulatory structure potentially resulting in higher producer milk prices. 

The three cooperatives, representing approximately 80% 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, Penn State University.

After a thorough review of the study results, including possible consequences and opportunities, the three cooperatives will continue working toward a change in the regulatory structure. Staff from the three co-ops 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.

DairyBusiness Communications will publish details of the study when they become available.