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BROCCOLI SALAD KITS RECALLED FOR THE DRESSING

Possible Listeria Contamination of Dressing in Broccoli Salad Kits

TODAY, October 25, 2013, USDA’s Food Safety and Inspection Service (FSIS) announced Taylor Farms, a Jessup, MD establishment is recalling approximately 5,084 pounds of broccoli salad kit products. The kits contain salad dressing in packets that are the subject of a Food and Drug Administration (FDA) recall due to concerns about possible Listeria monocytogenes contamination.

California Ag Today emphasizes the recall is for the salad dressing in the salad kit, not the broccoli.

The salad kits were shipped to distributors and retail locations (delis) for consumer purchase in Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York and Vermont. Two different – sized boxes of Taylor Farms Broccoli Crunch With Bacon And Dressing are subject to recall.

FSIS, FDA and the company have received no reports of illnesses associated with consumption of these products. Anyone concerned about an illness should contact a healthcare provider.

Consumption of food contaminated with L. monocytogenes can cause listeriosis, a serious infection that primarily affects older adults, persons with weakened immune systems, and pregnant women and their newborns. Listeriosis is treated with antibiotics.

Consumers with food safety questions can “Ask Karen,” the FSIS virtual representative available 24 hours a day at AskKaren.gov.

Patrick Cavanaugh2016-05-31T19:43:15-07:00October 26th, 2013|

More On CDFA’s Rejection of 4b Milk Adjustment for Dairy Industry

Sen. Tom Berryhill:

‘Thought we had an Agreement”

on Dairy Pricing Issues

Source: Western United Dairyman

Sen. Tom Berryhill (R-Modesto) sits on the Senate Agriculture Committee. A Stanislaus County farmer, Tom was elected to the Assembly in 2006 and to the Senate in 2010. He has been one of the state legislative leaders who have worked closely with a coalition of state dairy organizations to address the industry’s pricing issues. He was a member of the state Senate Agriculture Committee that held a special hearing over the summer and arrived at an arrangement struck between milk producers and cheese processors.

The proposal had two basic tenets. First, there would be emergency price relief for up to one year in an amount of no more than $.46 to be assigned to Class 4b milk. This would have replaced the existing emergency price relief. Second, the sliding scale used to value whey in the Class 4b formula would be restructured to result in a new ceiling of $1.00 per cwt. contributed to Class 4b, achievable at current market prices.

That deal unraveled this week when CDFA Secretary Karen Ross issued a decision on a petition filed by Western United Dairymen, California Dairies, Inc., Milk Producers Council and California Dairy Campaign. Ross wrote, “I understand there will be disappointment with this decision in light of the publicity surrounding the perceived agreement between producers and processors during the legislative session. However, the Department was not jointly petitioned by producers and processors – only some producers – and when questioned by the hearing panel, processors responded that there was no agreement.”

In an interview this week with Western United Dairymen, Berryhill said, “I thought we did come to an agreement with the Dairy Institute about a dairy pricing mechanism that would allow my guys to stay in business.”

Referring to fellow Ag Committee members Sen. Anthony Cannella (R-Ceres) and Chair Cathleen Galginai (D-Stockton), Berryhill pointed out, “The three of us thought there was an agreement. On the processor side they did not want to give anything. I thought it (the deal) was a happy middle ground. We all thought we had a deal that day and were very surprised to come back (after summer recess) and find everything had fallen out.”

Referring to Secretary Ross’ decision, Berryhill said, “Karen has made her decision to kick this can down the road to June. We will have to live with that and it will put us back to the drawing board. We will have to sit down and talk some more.”

The Decision by Sec. Ross will lead to more closed dairies, and devastation
to families, who for many generations, were able to make a good living.

The industry’s current financial crisis is driven in part by federal mandates on ethanol which are driving feed prices to record highs, said Berryhill. “Feed prices will continue high for the near future or so. This industry’s dynamics have changed.”

Looking ahead, Berryhill says he remains committed to finding a solution. “Kicking that can down the road doesn’t help anyone. Any decision we come to, both sides will be mad at me. Those processors don’t want to give anything up. The producers out there are really challenged and we are trying to keep them sustainable and working.”

Gov. Brown has not actively engaged on the pricing issue and Berryhill’s feeling is, “He would like to see this thing worked out on its own. I don’t think it will be able to. At some point in time he will have to insert himself. I’ve found him to be a very pragmatic guy and many times willing to do the right thing.”

What does the future hold for pricing legislation? Berryhill says, “You are going to see this thing resurface for sure – – I don’t see this issue going away.”

Patrick Cavanaugh2016-05-31T19:43:15-07:00October 26th, 2013|

FSMA UPDATE

FDA Releases Preventive Controls for Food for Animals Proposed Rule

By Laurie Greene, Associate Editor

TODAY, October 25, 2013, FDA released the Preventive Controls for Food for Animals Proposed Rule, required under the FDA Food Safety Modernization Act (FSMA). Under the new proposed rule, facilities that manufacture, process, pack, or hold food for animals would be required to adhere to current good manufacturing practices and implement hazard analysis and risk-based preventive controls.

Proposed animal food Current Good Manufacturing Practice (CGMP) regulations areas include:

Hygienic personnel practices and training;
Facility operations, maintenance, and sanitation;
Equipment and utensil design, use, and maintenance
Processes and controls; and
Warehousing and distribution.

An improved animal food safety system as stipulated in the Proposed Rule can reduce the human and animal health burden by reducing the risks of serious illness and death to animals, adverse health effects to humans handling contaminated animal food, recalls, and losses of contaminated animal food ingredients and products.

The proposed rule will be published in the Federal Register on October 29. 2013, and comments are due 120 days later.

FSMA outreach will involve the dissemination of information to the public and industry through meetings, hearings, and workshops.FDA will hold three public meetings to explain the proposal and provide additional opportunities for input on the Preventive Controls for Food for Animals Proposed Rule:

November 21, 2013 in College Park, MD.

November 25, 2013 in Chicago, IL

December 6 in Sacramento, CA.

Visit the meeting page to view the agenda and additional information.

For more information on FDA’s Food Safety Modernization Act, visit http://www.fda.gov/fsma

Patrick Cavanaugh2016-05-31T19:43:15-07:00October 26th, 2013|

CCM ANNOUNCES NEW BOARD CHAIRMAN

Kevin Severns Elected CCM Board Chairman

By Laurie Greene, Associate Editor

TODAY, California Citrus Mutual (CCM) announced that Kevin Severns, Sanger citrus grower and General Manager of Orange Cove–Sanger Citrus Association, was unanimously elected to serve as the 2013-2014 CCM Board Chairman.

Severns has served on the CCM Board since 2007, most recently as Vice Chairman. Additionally, Severns is a member of the Sunkist Board of Directors, Vice Chairman of the management committee for the industry-funded Citrus Pest and Disease Prevention Program, and former Director for the Citrus Research Board.

“Kevin’s experience and dedication to this industry is unquestionable,” notes CCM President Joel Nelsen. “He is undoubtedly an asset to the California Citrus Mutual Board and an exemplary leader for the California citrus industry.”

Severns has represented the citrus industry on a variety of issues, traveling to Sacramento and Washington, D.C. on multiple occasions.

“I appreciate the faith and support from my fellow industry members and Directors,” says Severns. “Many challenges await our future and the future of CCM. I am honored to serve on behalf of this great industry and represent California’s citrus growers as we navigate through these challenges.”

CCM is a citrus producer’s trade association whose 2,200 voluntary grower members comprise 75% of California’s 275,000-acre, $2 billion citrus industry. Founded in 1977, CCM represents its members on matters that affect their economic livelihood and provide them with necessary information to enhance their ability to profit from their work.

Patrick Cavanaugh2016-05-31T19:43:15-07:00October 25th, 2013|

NEW DEVELOPMENTS IN SALMONELLA OUTBREAK

Foster Farms: Company Apologizes And Improves Facilities While Mexico Blocks Imports

By Laurie Greene, Associate Editor

Almost simultaneously, Foster Farms issued an apology for the salmonella outbreak and described progress in its new food safety measures—and Mexico blocked imports of the company’s chicken.

Mexico, the top export market for U.S. poultry, told the U.S. Department of Agriculture (USDA) on Tuesday it was removing two Foster Farms plants in Fresno and one in Livingston from its list of approved exporters. USDA had identified these plants as the likely origins of a salmonella outbreak.

The removing of approval is believed to be the first time Mexico has responded in such a way to a U.S. health alert. While Mexico imposed anti-dumping duties on U.S. chicken leg quarters last year, the ruling has not been implemented because of poultry shortages brought on by avian flu.

Federal inspectors and Foster Farms have maintained that poultry from the processing sites are safe to eat if handled properly and cooked to a minimum of 165 degrees Fahrenheit.

Foster Farms relies overwhelmingly on domestic sales to drive its annual revenue of $2.3 billion; however, Foster Farms President Ron Foster said sales had fallen 25% since the USDA announced its health alert on Oct. 7.

NOTE: California Ag Today deems the Mexican refusal to accept Foster Farms chicken unfair because the consumer has always had the ability and responsibility to avoid salmonella by cooking poultry safely and preventing cross-contamination with other items.

Meanwhile, TODAY, Foster Farms posted the following full-page letter on Fresno Bee’sback page of the A section:

Dear Customers and Friends,

Our family is committed to the safety of your family.

For nearly 75 years Foster Farms has worked hard to earn your trust, and we know that the recent Salmonella illnesses associated with Foster Farms have shaken that trust.

We want to take this opportunity to apologize wholeheartedly.

We also want to let you know what we’re doing to fix this.

We have strengthened our food-safety programs, from our ranches to our processing plants and all the way to the packages you purchase at the store. These measures are designed to go beyond USDA requirements and set a new standard not just for Foster Farms but also for the poultry industry as a whole.

We have drawn upon the best advice, the best technology and the best efforts of our employees to develop these new programs, which have already proven effective in further reducing Salmonella. We will not be satisfied until Foster Farms is once again a product that you purchase with complete confidence.

Foster Farms is a family-run business, and food safety has always been at the very heart of what we do. In the coming days and weeks, I look forward to sharing more about our commitment to lead the industry in food safety. Until then, please take the time to visit our website at www.fosterfarms.com, or call us with any questions at 800-338-8051.

Sincerely,

Ron Foster

President and CEO of Foster Farms

OUTBREAK HISTORY

Since March, the salmonella outbreak from Foster Farms chicken has sickened at least 338 people across 20 states, including at least five in Fresno County. A particularly virulent strain of salmonella, Salmonella Heidelberg has proved resistant to antibiotics, so about 40% of victims have been hospitalized, double the usual rate associated with such outbreaks, according to the Centers for Disease Control and Prevention.

USDA threatened to shut down the plants after inspectors found multiple cleanliness violations, including fecal matter on carcasses.

In response, the firm agreed to develop new protocols to reduce contamination rates and bolster food safety at the three facilities, which continued operating after Foster Farms demonstrated progress on new control measures. Government regulators generally allow some levels of the contaminant in poultry facilities because it can be killed through cooking.

Please Click “Read More” Below

Yet, USDA announced the recall of more than 13,400 “Kirkland Signature Foster Farms” rotisserie chickens and related Kirkland Farms products such as soup, chicken salad and leg quarters over concerns about salmonella sold at Costco’s South San Francisco store between Sept. 24 and Oct. 15.

A previous recall encompassed more than 9,000 Foster Farms rotisserie chickens and related products purchased at the same South San Francisco Costco between Sept. 11 and Sept. 23.

COMPANY RESPONSE

Foster, the grandson of the company’s founders, apologized for the biggest food safety lapse in the family firm’s history, privately owned and operated by the Foster family since 1939, and acknowledged the reputation of California’s No. 1 chicken producer had taken a serious hit.

Foster could not account for why company and government inspectors failed to detect the contamination before the product reached consumers, but he stated, “We truly regret any illness associated with our products; our brand was built on trust and I think we violated … our consumers’ trust. And it’s now our responsibility to earn it back and we plan on doing that by having a gold standard chicken in the market.” He vowed to reassure consumers with improved sanitation and other measures to reduce the ubiquitous bacteria proving a challenge for poultry producers nationwide.

Foster also defended his decision not to recall Foster Farms poultry because the tainted birds met or exceeded industry standards for salmonella, and the firm’s products were still safe to eat if handled properly and cooked to a minimum of 165 degrees Fahrenheit. “If we had pulled our product from the market and put someone else’s in, we’d be lying to the consumer because you’re saying someone else is better,” Foster said.

Officials said the company has begun vaccinating birds for Salmonella Heidelberg and feeding chickens probiotics, a sort of good bacteria, to combat salmonella in the birds’ digestive systems. Foster Farms is also requiring poultry breeders who supply the company with chicks to certify that the birds are free of salmonella.

Foster Farms has increased sterilization efforts on surfaces, equipment and workers’ clothing in its processing facilities. Officials admitted the company had lagged behind in its safety procedures inside the plants because it focused its energy on the farms, where the threat of salmonella contamination was greater.

Foster Farms has already reaped rewards from the new safety measures. The company is close to achieving a chief goal: reducing the instances of salmonella on its chicken parts from an industry average of 25% to 5%.

Foster said sampling shows the company is currently at 5.6%.

While the industry as a whole usually finds salmonella on 3.5% of its whole birds, Foster Farms’ chickens showed no evidence of salmonella, and Foster believes that the reduction in salmonella is sustainable and hopes that other poultry producers will follow suit.

Although some food safety advocates have called for reduction in antibiotics used in farming. Robert O’Connor, Foster Farms’ chief veterinarian, defended their use in the early stages of their chickens’ lives to prevent a common gastrointestinal disease. “These antibiotics are used very sparingly,” O’Connor said. “There has to be a reason for treating a flock. There has to be a disease that requires us to treat.”

Both O’Connor and Foster had hoped that the worst has passed for the outbreak, largely because the company moved quickly to address shortcomings in its facilities. “Our goal was to get improvements in place as soon as possible,” Foster said.

Sources: Centers for Disease Control and Prevention; Foster Farms; Fresno Bee; Rich Pedroncelli, Associated Press; David Pierson and Tiffany Hsu, Los Angeles Times; Lynne Terry, The Oregonian; USDA

Patrick Cavanaugh2016-05-31T19:43:16-07:00October 25th, 2013|

SAN JOAQUIN VALLEY GROUNDWATER OVERDRAFT FORUM

Forum on Groundwater Overdraft Management, Education

A regional forum Nov. 18 in Tulare will examine challenges and concerns associated with groundwater overdraft in the San Joaquin Valley and the American West.

Organized by the nonprofit American Ground Water Trust (AGWT), the forum will explore how different communities throughout the West have dealt with groundwater overdraft and will consider if local control is a feasible water management solution for San Joaquin Valley water users.

Hosted by Kaweah Delta Water Conservation District and Tulare Irrigation District with support from ACWA and other organizations, the forum will bring together irrigation interests, engineers and hydrologists, water resource managers, agency professionals and attorneys to share current information about groundwater management activities at the local, regional and state levels.

Four panel discussions will cover past and present groundwater conditions, overdraft and subsidence, case studies in several western states, groundwater law overview, and possible future actions, among other topics. ACWA Executive Director Timothy Quinn and ACWA Groundwater Committee Chair Greg Zlotnick are among the many panelists scheduled to participate.

There is a strong ongoing need to educate the public, and capture the imagination of decision-makers about the economic and environmental benefits of creative use of sub-surface water resources. Ongoing drought conditions, predictions of the hydrologic implications of changing weather patterns, ineffective and unsustainable water management, emerging aquifer storage technologies and political uncertainty regarding regional water transfers demand increased attention to the benefits of using groundwater resources as an essential component for optimizing water resources.

To register, go to the American Ground Water Trust.

Patrick Cavanaugh2016-05-31T19:43:16-07:00October 24th, 2013|

TODAY IS FOOD DAY!

Food Day: Preparations for the Future

TODAY is Food Day, a nationwide celebration and movement for healthy, affordable, and sustainable food.

The California Department of Food and Agriculture (CDFA) Secretary Karen Ross said, “We are part of a system that will be asked to produce roughly twice as much food by 2050, while utilizing fewer natural resources. California farmers and ranchers must prepare to meet the challenges and opportunities of a growing population at home and abroad.” Asia, deeper into the 21st Century, will see an exploding middle class, and many of those newly minted consumers will want the quality, safety and reliability of California products. “I was fortunate to have the opportunity to travel to Asia twice over the last year. I witnessed that interest first-hand.”

Ross is encouraged by the vision of the UC Davis’ World Food Center, which addresses perhaps the most critical issue facing society today—how to feed and nourish a growing planet in an environmentally sustainable way. The World Food Center takes broad approach to solve humanity’s most pressing problems in food and health, including sustainable agricultural and environmental practices, food security and safety, hunger, poverty reduction through improved incomes, health and nutrition, population growth, new foods, genomics, food distribution systems, food waste, intellectual property distribution related to food, economic development and new technologies and policies.

More than 30 centers and institutes at UC Davis will collaborate through the World Food Center, plus world-class scientists, innovators, philanthropists and industry and public leaders. The center will generate the kind of visionary and practical policy solutions to feed and nurture people for the future. “Few major universities, if any, have the interdisciplinary research strength and close connection to a diversity of agricultural crops nearby to support an enterprise like this,” said Ross.

UC Berkeley’s new Berkeley Food Institute is equally ambitious. The center’s mission is to help food and agriculture systems transform to become diverse, healthy, just, and resilient from the local to international levels. The Institute will stimulate collaborative research efforts across its five partner units—Berkeley Law, the Goldman School of Public Policy, the Graduate School of Journalism, the School of Public Health, and the College of Natural Resources (CNR), plus faculty affiliates throughout the University.

Global climate change, a growing world population, broad public health concerns from hunger to obesity, and complex policies from the farm bill to food safety are among the large-scale issues that have been changing the dialogue about food.When it comes to food, separating agriculture from environmental, public policy, social justice and public health issues no longer works.

Secretary Ross stated, “A sustainable food production system must include producers of all sizes and approaches, from those serving the export markets, to large-scale producers, to smaller-scale operations that include the farm-to-fork movement that has attracted so much interest in recent years.”

CDFA is opening a Farm-to Fork Office that has a special interest in healthy food for children, and in schools. “While local food procurement can sometimes be a challenge for schools, this office will work to establish best practices for procurement of locally grown produce by large-scale buyers,” explained Ross.

October is National Farm-to-School Month, and Ross explained that the most important work we do is to teach children about healthy eating and the origins of food because if it is to remain sustainable, healthy and affordable, it will be up to them.

Patrick Cavanaugh2016-05-31T19:43:16-07:00October 24th, 2013|

Plant Disease Seminar in Salinas

2013 Plant Disease Seminar

Tuesday, November 19, 2013 8:00 a.m. to 12:00 p.m.

County of Monterey Agricultural Center Conference Room
1432 Abbott Street, Salinas, California

This seminar will focus on a broad range of topics dealing with plant pathology, pest management, and food safety.

Topics will include updates on plant disease and pest developments in coastal California, research findings on plant diseases, and current issues affecting growers, pest control advisors, and other agricultural professionals.

Registration/sign in is from 8:00 to 8:30. There is no fee for this meeting. Continuing education credits will be requested. Please call ahead (at least 24 hours) for arrangements for special needs; every effort will be made to accommodate full participation.
For more information, contact Steven Koike (831-759- 7350; 1432 Abbott Street, Salinas, California 93901).

Requirement from California DPR: Bring your license or certificate card to the meeting for verification when signing in for continuing education units.

An afternoon session, held in this same conference room, will be hosted by CAPCA, Monterey Bay Chapter.

Patrick Cavanaugh2016-05-31T19:43:16-07:00October 24th, 2013|

NOMINATE CALIFORNIA AG WOMEN LEADERS FOR AWARD

Common Threads Award Nominations

“Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”– Margaret Mead

Giving to others is an integral part of the California Agricultural Leadership Foundation, which teamed up in 1997 with the College of Agricultural Sciences and Technology and the Ag One Foundation, both at California State University, Fresno, to honor women in agriculture who have chosen to make a philanthropic difference in their communities and our world.

The Common Threads Awardrecognizes individuals whose exemplary and extraordinary contributions of time, energy and resources have enhanced those around them.

A second Common Threads program was initiated in 2003 in conjunction with the College of Agricultural and Environmental Sciences at the University of California Davis, to expand and develop the mission of the original endeavor.

While each program maintains specific and unique geographic criteria, the overall award qualifications are the same: women with deep roots in agriculture who have given their time and energy to make a significant difference with their philanthropic giving and volunteer support within the agricultural industry, as well as their communities.

In moving forward, Ag Leadership, along with its partner organizations, will continue to explore new and exciting ways of recognizing outstanding philanthropists. If you know of a woman whose dedication and talents should be considered for a Common Threads Award, please submit a nomination packet.

Common Threads Fresno recognizes women in the following counties: Fresno, Kern, Kings, Madera, Merced, and Tulare.

Common Threads Sacramento Valley recognizes women in the following counties: Amador, Butte, Calaveras, Colusa, El Dorado, Glenn, Lake, Napa, Nevada, Placer, Plumas, Sacramento, San Joaquin, Sierra, Stanislaus, Solano, Sutter, Tehama, Yolo, and Yuba.

The California Agricultural Leadership Foundation, the Ag One Foundation and the Jordan College of Agricultural Sciences and Technology (JCAST) at California State University, Fresno, will host a luncheon for this year’s honorees on March 27, 2014, at Fresno State.

Nominations should be submitted by Monday, Nov. 25. A PDF version of the nomination form can be obtained at www.agleaders.org.

For more information, contact Emily Lazzerini at the California Agricultural Leadership Foundation at 831-585-1030 or Sadie Hemsath at Ag One at 559-278-4266.

Patrick Cavanaugh2016-05-31T19:44:17-07:00October 24th, 2013|

THERE IS ANGER AMONG DAIRYMEN AND WOMEN

4B Cheese Price Adjustment

Rejected by CDFA

By Patrick Cavanaugh

In a decision that has angered California dairymen and women, California Department of Food & Agriculture (CDFA) Secretary Karen Ross on Tuesday rejected the 4b cheese milk price adjustment requested in a petition from dairy producers and the subject of a public hearing on Sept. 12.

“Dairy farmers are furious,” said Michael Marsh, Chief Executive Officer with the Modesto-based Western United Dairymen. “A milk producer was in my office today stating that we have to get rid of CDFA and go to the Federal Marketing Order,” noted Marsh. “And even though there are real problems with the Federal Marketing Order for California, there is more stability with the Federal government that you cannot get with the state government.

Ross’ Decision is Sure to Close more California Dairies.

Marsh said he would not be surprised if the milk co-ops in California were already petitioning USDA to consider a Federal Milk Marketing Order for California. “But the Federal Order is not all-around better for California because certain cheese makers are not required to pay the regulated minimum price and instead pay whatever they want.

“Also, the hearing process is quick (about 60 days) in California, but much longer in the Federal Order, which may require more than two years and hundreds of attorneys to prepare for a hearing. It’s good for the cheese makers if they to not have pay a regulated price, and, again, bad for dairy producers,” noted Marsh.

“There needs to be a lot of education for dairy producers before they sign on to the Federal Marketing Order,” Marsh said.

Ross extended the current temporary price relief across all classes of milk. The overall price increase, estimated at about 12.5¢/cwt. set to expire on Dec. 31, 2013, is now extended through June 30, 2014.

“The temporary price relief is not at all helping the milk co-ops,” said Marsh. “It just takes the price from the right pocket and puts it into the left pocket. It hurts the coops who want to expand to take advantage of the global marketplace.”

“The rejection of the adjusted factor in the 4b cheese milk formula is devastating to dairy producers already hurting, with many going out of business,” said Marsh. “And the dairy industry is not happy with cheese makers as they renege on their early agreement,” noted March. “They came to the hearing and said: “What Deal?”

“Early on, all cheese makers were in full support of the changes due to economic conditions affecting the dairy industry,” Marsh said. “Apparently some cheese makers were negotiating in good faith and others were not.”

The requested 4b adjustment was part of AB 1038, authored by Dr. Richard Pan(D-Sacramento). The adjustment was unanimously approved by the Senate Ag Committee on a 3-0 vote, with Chair Cathleen Galliano, (D-Livingston) and her republican colleagues, Tom Berryhill (R-Twain Harte) and Anthony Cannella, (R-Ceres). The committee agreed to move the bill after being informed that a deal had been struck between the cheese makers and dairy producers. The deal was negotiated on behalf of the California dairy families, represented by Pan, and the cheese makers.

The deal was both to adjust the whey factor in the 4b cheese milk formula by raising the cap from 75 cents per hundredweight (CWT) to $1 per CWT, and to provide an additional surcharge on milk going into cheese-making of 46 cents per CWT during the next year.

According to Marsh, “The value of whey is capped at 75 cents per CWT, which is ridiculous, as we have seen whey values as high as $4 per CWT in other states back when we were getting 25 cents per CWT as our cap.”

“The entire deal was intended to reconnect our cheese price as best we could back to the marketplace,” Marsh noted.

“Unfortunately, CDFA Secretary A.G. Kawamura, at the request of California cheese makers in 2007, disconnected the cheese milk price from the marketplace, and we have been struggling ever since to reconnect it. It is unfortunate that Kawamura agreed to transfer wealth from the famers to the cheese makers, especially given everything else that hit California dairy farmers beginning in 2008,” said Marsh.

“Essentially, we were asking Secretary Ross to fix the blunder that A.G. Kawamura created in favor of the cheese makers,” Marsh said.

“Since the disconnection change, there has been a transfer of very close to $1 billion dollars from the dairy farmers to the cheese makers. It was just another nail in the coffin for so many dairies that have since gone out of business,” said Marsh. “The decision by the secretary is sure to put more dairies out of business,” he added.

“The rejected increase would have added an additional $110 million to the pool of California dairy farmers. At the same time, it would not have cost consumers a penny as it would simply redistribute assets from cheese makers back to the farmers,” said Marsh.

In her decision announcement, Ross said the extension was warranted; however, she remained convinced that continued adjustments to the minimum price would be inadequate to address the ongoing difficulties in the state’s dairy industry, and the state’s “antiquated state pricing system demands structural reform.”

“I understand there will be disappointment with this decision in light of the publicity surrounding the perceived agreement between producers and processors during the legislative session,” Ross wrote. “However, the Department was not jointly petitioned by producers and processors – only some producers – and when questioned by the hearing panel, processors responded that there was no agreement.”

CDFA Secretary Again Sides with the Cheese Industry

Ross said hearing testimony failed to provide justification for the petitioners’ position that price relief be based on the whey factor and the 4b formula.

“In fact, the testimony supports the Department’s position that the manufactured milk pricing formulas need to be changed to equitably return value to producers and recognize that only a few processors are realizing the full value of whey,” Ross said.

“California’s 1960’s system of regulated milk pricing is outdated and impairs the ability of the dairy industry to meet 21st century challenges and opportunities in national and international markets,” she continued. “These markets have changed dramatically, as have product distribution, costs, and feed and production patterns.

Marsh emphasized, “The only thing that will help the dairy industry right now, would be an increased consumer demand for California milk products. The public should purchase more California milk, ice cream, yogurt, cream cheese, sour cream, cottage cheese, and more. This would help.”

Patrick Cavanaugh2016-05-31T19:44:17-07:00October 24th, 2013|

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