11-2 IAN GIPSA to Dairymen
The GIPSA laws set into place by the Feds and USDA seem totally unfair. At least a lot of cattlemen have that idea but what about dairy producers. I’m David Sparks and I’ll get their thoughts in a minute. The cattlemen have reacted to new GIPSA laws as though it interferes with their right to negotiate in the marketplace for fear of lawsuits saying that the negotiations were unfair. I wondered how the dairy people saw it and called Bob Naerabout, Executive Director of the Idaho Dairymen’s Association. Got him on a cell phone that was in and out but here are his thoughts verbatem. “You have the federal order system in all states, most states, Idaho being one of the exceptions. You look at that as minimum pricing. Whatever the federal order says this is the price the federal order does dictate the price, they have formulas in place. After that dairy producers can go and organize, they have the right, as an example Meadow Gold. They can say we’ll supply you as Meadow Gold but besides the federal order minimum price they can say we want to up-charge because we’re going to do even deliveries and we’re going to wash our own trucks, we’re going to up-charge another 45 cents a hundred weight. But the processor might go to somebody else and say federal order minimum price plus 25 cents and I’ll wash your truck. So it’s not quite as black and white as what you’re thinking.