From Jay Van Rein at the California Department of Food and Agriculture:
Statement by Secretary Karen Ross:
The Dairy Future Task Force is made up of dairy producers, processors and cooperatives asked to come together to find common ground upon which they can build a new, more stable and contemporary path for the dairy industry. The first session, held October 23-24, provided an opportunity to agree on a common fact base and develop a sense of what the group wants to accomplish in the coming months. The task force achieved alignment around a shared vision for the future of the California dairy industry which is a significant accomplishment and a key step toward long-term success. The initial session was designed to set the stage for the group to identify and build strategic pillars that will result in a robust, profitable, demand-driven dairy industry. I was impressed by the progress made and look forward to continuing this important work. I commend the group’s members for embracing their task and the difficult but critical discussions it entails.
Based on the discussion of concepts for potential short-term solutions, CDFA anticipates receiving a petition shortly and will evaluate it on an expedited basis. I very much look forward to working with the talented and passionate producers and processors who are willing to provide leadership to this very important sector of the agricultural community.
Background:
The California Department of Food and Agriculture and the entire dairy industry remain very concerned about the current crisis affecting many of our state's dairy families. The drought has resulted in extremely high feed prices at a time when dairies were already receiving low prices due to falling demand and over supply of milk. Many dairies are still trying to recover from the 2009 crisis which saw record losses in the industry and they simply didn't have enough equity to see them through this crisis.
Where possible, the Department has used the limited discretion it is given by law to provide appropriate adjustments, such as modifying the whey factor scale up to 50 cents per hundredweight based on commodity prices. Moreover, fluid milk prices have been rising to meet market conditions. The minimum price has increased approximately 30 percent since June 2012 and is now among the highest prices on record. Class 4b milk, which is used to make cheese, is also up in recent months by about 30 percent.
Looking ahead, members of the industry agree the path forward must include reforms to our pricing structure as a key step towards a better future. The Dairy Future Task Force will tackle these and other important issues by facilitating open, honest conversations between people personally invested in dairy farms and processing plants. Task force members were invited as individuals - not as representatives of associations or other organizations. There will be significant public vetting of various stages of the task force's work, which will strive to create consensus around short- and long-term solutions.
The deliberations of this group will proceed under the administrative oversight of the California Milk Advisory Board (CMAB) in a private setting that we hope will eliminate public posturing, hyperbole, and positioning for political gain. The task force is the first and probably most important step the industry can take to find agreement on a shared vision for the future and create an action plan for making that vision a reality.
Several years ago, CMAB showed leadership and took a bold step in commissioning a study which provided concepts for long-term sustainability and industry growth over a 20-year period. This kind of intense industry self-evaluation and critical analysis will set a firm foundation upon which the task force can build. The Department is confident the industry will seize this opportunity, find consensus and create the momentum necessary to implement meaningful changes that will ensure a more stable and healthy California dairy industry.
Dairy Future Task Force members:
David Ahlem, Hilmar
Joey Airoso, Tipton
Joe Augusto, Visalia
Tom Barcellos, Tipton
Marcus Benedetti, Petaluma
Ben Curti, Tulare
Rochelle De Groot, Hanford
Joe DeHoog, Ontario
Lucas Deniz, Petaluma
Eric Erba, Visalia
Frank Fereira, Red Bluff
Mike Gallo, Atwater
Dino Giacomazzi, Hanford
Dominic Grossi, Novato
Scott Hofferber, San Bernardino
Dennis Leonardi, Ferndale
Steve Maddox, Riverdale
J.T. Maldonado, Hanford
Tony Mendes, Riverdale
George Mertens, Sonoma
Rick Michel, Waterford
John Oostdam, San Jacinto
Brian Pacheco, Kerman
Ray Souza, Turlock
Sue Taylor, Denver
Arlan Van Leeuwen, Oakdale
Sybrand Vander Dussen, Chino
Simon Vander Woude, Merced
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