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Ag News
Dairy producers can vote
Published Thursday, July 03, 2008 at 12:34 PM
"It's frustrating to our members when we see pricing structures developed that pit producers against processors, especially when we are both very dependent on one another," said National Farmers Ag Policy Analyst, Gene Paul.
USDA seeks to amend manufacturing (make) allowances for cheese, butter, nonfat dry milk and dry whey. The decision would mean producers would see a reduction of about 35 cents per hundredweight (cwt.) from their pay price.
"We agree that processing costs have increased significantly over the past year and we know that many processors find it difficult to cover their costs,” said Paul. "But we also know that production costs have increased for our producer members as much, if not more than processor costs. Yet the proposed federal order change does not include a method for compensating farmers for their increased costs."
The amendments to the federal milk marketing orders are subject to producer approval before they can be implemented. Public comments are due Aug. 19. National Farmers encourages producers to vote individually.
"Farmers do not have the ability to pass costs on directly, and they are overburdened with their own increased costs of doing business," said Paul. "It would be prudent for USDA to reconsider their proposal to increase processor make allowances."
"We stand ready to work with processors as a team united to create a new pricing structure that can sustain the nation's valuable processing industry, as well as our dairy producers, Paul concluded.
National Farmers is a price negotiation and marketing organization for the nation’s farmers and ranchers.
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