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MPC: Rejection of CDFA Proposal Pins Hope on Federal Order

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   In a statement issued late Thursday, the Milk Producers Council’s Rob VandenHeuvel issued the following:

“Milk Producers Council was hopeful that there could be an opportunity to act in the near term to start closing the gap between California’s Class 4b and the Federal Order Class III prices, as that huge gap has represented more than $1.4 billion in foregone revenues for producers over the past several years. However, it was clear from the industry feedback that the three major California cooperatives – who have committed to work towards a California Federal Milk Marketing Order - were not comfortable with the reforms being presented by CDFA. 

   The huge gap between the California and Federal Order price for milk sold to cheese plants is not going away on its own, so by rejecting this CDFA proposal, those three cooperatives (who alone control the Federal Order process) are now directly responsible to the California dairy producers they represent to get that Federal Order petition submitted as soon as possible so that we can begin that process. 

   While MPC was willing to engage in the discussions with CDFA over near-term price relief that the lengthy Federal Order process is simply unable to provide, we would fully agree with the notion that California dairy producers deserve a chance to operate on an equal playing field with our fellow out-of-state dairy farmers. We hope the recent discussions surrounding the CDFA proposal help to reinvigorate those efforts towards a California Federal Order, as they are now the only reasonable path forward towards a fair price for California dairy families.”

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