Hope Yet For California Dairy Industry
June 20, 2016
Proposed Federal Marketing Order Would Benefit California Dairy Farmers
By Brian German, Associate Editor
California gets hit the hardest when milk prices drop and it is the last state to recover from depressed dairy prices. The California dairy industry eagerly awaits a decision from the USDA regarding the move to a Federal Milk Marketing Order (FMMO). Chandler Goule, senior vice president of programs for the National Farmers Union, believes the state will gain from moving to FMMO.
“I think it will definitely be a win for the dairy industry,” said Goule, “and for our dairymen out there.” Goule anticipates increased participation in the margin revenue program that was incorporated into the FMMO.
Should the USDA hand down a positive determination, the move to a federal order would require a 2/3 majority vote from California dairy producers. “With California being so far from the corn and grain belt, even though you all produce a lot of food in California, it’s not necessarily feed additives for livestock,” Goule remarked.
Unfortunately, the FMMO has a much better chance of being voted in during a time when milk prices are low, according to Goule, as high milk prices may lessen voter turnout and sense of urgency.
“I’m definitely not advocating for low milk prices whatsoever,” Goule said. “We want high milk prices out there. The sooner we can get this vote done, the better off California will be, and the better off your milk prices will be. Then we can start working on this as a nation rather than 48 states—and California by itself.”