By Arden Tewksbury, Manager, Pro Ag
(March 2015) All dairy farmers must now clearly realize the battle lines have clearly been defined by the International Dairy Foods Association (IDFA). My understanding is that a few processing organizations make up IDFA. For whatever reason, these other organizations are seldom mentioned. I remember in the old days the New York City Ice Cream Manufacturers Association would show up at milk hearings and oppose almost everything that was beneficial to dairy farmers.
However, now it is IDFA carrying the torch against dairy farmers. In the February issue of Dairy Business East, Connie Tipton, who is identified as the President and CEO of IDFA, made it very clear that the Federal Milk Marketing Orders (FMMO) should be eliminated. Connie says, “We don’t need the FMMOs.”
Dairy farmers: don’t be misled! If FMMOs were eliminated, the large processors would be able to pay you whatever they choose! You dairy farmers would no longer have a classified pricing system. Today the dairymen must ship their milk to processors that manufacture dairy products and these producers receive a share of the fluid market value. The FMMOs ensure you of this share. The FMMOs in most cases succeed in preserving orderly marketing of milk. Dairy farmers, you must now decide if you’re going to help preserve the FMMOs or are you going to turn over your future to some of the people in IDFA.
What about our large dairy cooperatives? Are they going to be with the dairy farmers or the processors? It’s time for the co-ops to show their true colors. Dairy farmers should no longer be intimidated of the fear they could lose the market for their milk.
Connie also seems to have problems with “standard of identities” for dairy products and other food. Connie, you must realize that the large number of consumers wants to know what they are eating, and this includes dairy products. Consumers are demanding every day to know what the ingredients are in their food, and they certainly have the right to know what country their food is coming from. Oh, by the way, an irate consumer just called me, informing me that in a store in Milford, Pennsylvania, right by the Delaware River, they were selling good ole Land ‘O Lakes butter for $6.59 a pound. She wanted to know how much of the $6.59 were the dairy farmers receiving. I told her, not very much. Dairy farmers, some of us have testified at milk hearings. Almost every time attorneys for the processors are there trying to tie us up with their questions. We agree there needs to be some changes to the FMMO system.
There is an old saying, if you’re not for me, you’re against me. Yes, the battle lines are clear, and we intend to do our best to be sure the real needs of our dairymen are met.
Pro-Ag has cooperated with the National Family Farm Coalition and their supportive organizations in submitting 14 recommendations to the USDA for improvements in the Federal Order. Some of them are: 1) Continuation of the FFMOs. 2) A new pricing formula to establish the value of milk at the dairy farm based on the national average cost of production. 3) All classes of milk used for manufacturing dairy products be combined together. 4) A milk supply management program should be developed patterned after the program contained in the Federal Milk Marketing Improvement Act. This program would not tell dairy farmers how much milk they would produce, but if the dairy farmer produces milk over his established base, he will be penalized on his over-production. 5) The Cooperative Payment Provision contained in former Federal Order #2 be established in all 10 Federal Orders.
Are you with us, or against us?
Pro-Ag can be reached at 570-833-5776.