CA Dairies & Federal Milk Pricing System Reform

Flexibility and fairness in the federal milk pricing system is a top priority for Edge Dairy Farmer Cooperative, says CEO Tim Trotter in a press conference outlining federal milk pricing reform.

“Today we are here as Edge Dairy Farmer Cooperative to share what we see as a path forward on milk pricing reform in the United States. This comes after more than a year of research, conversations with our members, participation in a multi-state task force and engagement with other stakeholders. As we look to the future, we’re announcing two key policy priorities for pricing reforms.”

“Edge is focused on improving relationships between farmers and processors in a way that will increase transparency, fairness and competition, and give farmers a reasonable amount of price certainty. This relationship must transition from strictly transactional to strategic. One that’s based on a long term view, adaptability to the markets and customers and requirements of products. A transparent business-to-business approach will be critically important to success for our farmers and processors. We also need a system that safeguards us from doing business outside of the current Federal Milk Marketing Order.”

Discussions about the future of the FMMO system have increased in recent years, drifting from the Class I mover formula to negative producer price differentials to make allowances and beyond. The effects of the pandemic only intensified the debate.