Time For Milk Pricing Reform

Chris Galan, National Milk Producers Federation, senior vice president of member services and strategic initiatives says that it is time for milk pricing reform.

“The last time that the Federal Milk Marketing water system was updated was back in 2000. And a lot of people who are drinking milk today weren't even born then. And so it's high time for a refresh is something we've been working on at National Milk for almost a year and a half now getting input from our members from farmers and cooperative experts about the milk pricing system. And a lot of it boils down to Laurie, making certain that farmers get the best price the right price for their milk, and then also making certain that cooperative owned processing plants also have the right price for what they do and they take raw milk and turn it things like cheese and butter.”

National Milk will be submitting recommendations to USDA soon.

“And then what's that what that will do is trigger a process for USDA to consider having a national hearing on these recommendations.”

Galen explains that the lengthy USDA hearing will feature industry witnesses and evidence in order to prove why the milk pricing reform is needed.

“What are the right numbers for formulas that affect farmer milk prices? And what processes pay to producers?”

Chris Galen with the National Milk Producers Federation