Processors don't like dairy policy reform plan
Washington Ag Today July 15, 2011 Earlier this week a meeting was held in Olympia on the National Milk Producer Federation’s Foundation for the Future proposal for federal dairy policy. Also this week, Ranking Democrat on the U.S. House Agriculture Committee, Collin Peterson of Minnesota, released a dairy reform discussion draft, which incorporates the Federation’s plan. The International Dairy Foods Association, which represents dairy food processors and manufacturers opposes National Milk’s proposal. The Association’s senior vice president for legislative and economic policy, Jerry Slominski, says the proposal’s dairy market stabilization program is a problem. Slominski: “The Foundation relies on a new government program that will actually tax dairy producers when prices are low and then spend the money to purchase dairy products. We think this type of a program is kind of the wrong way to go. This is the antithesis of free markets in that it would use a new government program to effectively manipulate domestic dairy prices.” Slominski says that manipulation of domestic prices would harm U.S. dairy exports which have been a big success story. The National Milk Producers Federation disputes that claim saying their plan includes a clause that would prevent the stabilization program from kicking in if U.S. prices are 20 percent or more above world prices for certain products. Slomenski says his industry recognizes the need for a dairy producer safety net and it prefers USDA’s Livestock Gross Management Dairy insurance program which has proven so popular it’s run out of funding. I’m Bob Hoff and that’s Washington Ag Today on Northwest Aginfo Net. ?
