Calif. Dairy Organizations Collaborate Regarding Quota Program

Groups Launch Exploratory Effort to Solicit and Analyze Proposals

News Release

Recently, the United Dairy Families of California, California Dairies, Inc., Land O’Lakes, Inc., Dairy Farmers of America, and the STOP QIP organization announced a multi-phase process aimed at soliciting and analyzing industry input on California’s historic quota program.

Included in this process is a series of meetings, starting later this month, open to all dairy producers and interested parties. These meetings are intended to solicit various pathways for the state’s quota program.

1) This multi-phase process includes three key parts: The Think Tank, Producer Feedback, and Analysis.

2) The Think Tank phase is for information-gathering from various segments of the dairy industry. This will include the meetings identified below, where producers will be able to voice their opinion and contribute ideas or concepts.

3) The Producer Feedback phase will allow producers to comment and challenge the ideas developed in the Think Tank phase.

In the Analysis phase, dominant ideas from the Producer Feedback phase will be analyzed for economic impacts, and legal pathways to adoption will be determined.

This process will be implemented with the assistance of dairy industry economist Dr. Marin Bozic and dairy market analyst Matt Gould. Dr. Bozic and Mr. Gould will be conducting an economic analysis of the proposed ideas.

The first series of meetings associated with the Think Tank phase are as follows:

● Tuesday, July 30 – 2 pm to 4 pm – Embassy Suites, Ontario

● Wednesday, July 31 – 9 am to 11 am – Heritage Complex, Tulare

● Wednesday, July 31 – 2 pm to 4 pm – Turlock Ballroom

● Thursday, August 1 – 9 am to 11 am – Washoe House, Petaluma

Meeting space is limited. All participants are strongly encouraged to register at

www.dairyfamilies.org/events

Poultry Industry Doing Well, for Now

Poultry Industry Shines, Like a Canary in a Coal Mine

By Patrick Cavanaugh, Farm News Director

 

Bill Mattos, president of the California Poultry Federation, based in Modesto, reported the state’s poultry industry is doing well despite new regulations and wage increases. “First of all,” he explained, “it looks like chicken has taken over as the [category of] highest meat consumption now in the United States. It’s getting more and more popular, so that’s good,” Mattos noted.

“Also, the best thing is the industry seems to be weathering the Highly Pathogenic Avian Flu (HPAI) A (H5N1) storm,” he continued. “In California, we’re doing our due diligence with biosecurity. We don’t have any Avian Influenza. We’ll knock on wood for that.”

California Poultry Federation logo“The industry is also enjoying lower feed costs. That’s 60% of our cost, so that’s good news,” he added.

And, poultry industry employees have job security. “It doesn’t look like there will be fewer employees in the industry over the next few years, and we’d like to have more,” he said.

Notwithstanding the good news, challenges loom on the near horizon. “The Air Quality and Water Quality Control Boards are regulating a lot of different industries,” Mattos observed. “They’re starting to look at the poultry industry now that they have completed the dairy rules. We’re very concerned about those issues, so we are trying to work with the boards to explain to them what we do and how our business runs,” noted Mattos.

The updated minimum wage requirement may hurt the California poultry industry, another big concern of Mattos. “We supply half the chicken consumed in California. The other half comes from out of state. Without the same minimum wage requirements, we’re going to be at a disadvantage. We’re looking into the different possibilities—what we can do—to offset that.”

“You will be seeing some new things coming out from the poultry industry as we look at the ramifications of the new minimum wage,” explained Mattos. “We can’t compete with that. They are going to be taking a lot more percentage away from us, which may cost us some jobs if we don’t work this out.”

“With the minimum wage hike, California lawmakers are trying to appease workers. But it really affects businesses. Ours happen to be mostly in the Central Valley, which is the hardest-pressed area for unemployment. It isn’t a good place to have to follow wage requirements like you’re seeing in San Francisco and Los Angeles. It frankly makes no sense in the Central Valley,” said Mattos.