WUD proposes temporary California milk price increases
Western United Dairymen (WUD) proposed temporary formula changes to increase Class 1, 2, 3 and 4b milk prices in California during a hearing, Dec. 21. The temporary increases are sought for a period of six months, the maximum allowable period set by California Department of Food & Agriculture secretary Karen Ross.
WUD’s proposed changes would:
• Class 1: raise milk fat 1.05¢/lb.; raise milk solids-not-fat 8.93¢/lb.; and raise the milk fluid carrier 0.26¢/lb.
• Class 2 and 3: raise milk fat and milk solids-not-fat 8.2¢/lb.
• Class 4b; raise milk solids-not-fat 11.5¢/lb.
WUD CEO Michael Marsh said escalating feed prices and regulatory pressures in the state were key factors in rising costs, calling on CDFA to take immediate action on the price formulas.
“Current and proposed environmental regulations have led and will continue to lead to added costs, something farmers in no other state have to deal with,” he said “Aside from this regulatory burden, costs of production on the dairy have increased significantly.
“The Secretary, with the appointment of the task force, understands the challenges ahead and the need for a long term solution,” Marsh said. “In the meantime, however, dairy producers are facing tough economic pressures. If the producer is to make it through these difficult times, immediate price relief is needed.”
CDFA has 62 days to respond to the proposals presented at the Dec. 21 hearing.
For more information on California milk price calculations, visitwww.cdfa.ca.gov/dairy/howto_calc_prices_main.html
Look for updates on the Dec. 21 hearing at www.cdfa.ca.gov/dairy/dairy_hearings_matrix.html