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Dairy producers lobby for price stabilization act
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Agreement was reached among dairy producers from around the country earlier this week after they met in Chicago to discuss the need for an effective nationwide dairy inventory management program.

“CDC (California Dairy Campaign) has long called for a nationwide inventory management program and now dairy organizations from around the country are working together to achieve this important goal that will provide income stability for dairy producers in the future,” said Joe Augusto, CDC president.

Dairy producers came together to strongly support the Dairy Price Stabilization Act that was introduced by Rep. Jim Costa, D-Calif., according to a press release. The act would establish an inventory management program to balance milk supply with market demand, enable individual dairies to choose to either maintain their current production level or expand their production and increase their share of the market. Dairies that choose to expand their market would pay a fee for the first year of expansion and that fee is paid to those dairy farmers who chose to maintain their current share of the market.

“The Dairy Price Stabilization Act is the best way to establish a successful inventory management program that is fair to producers and will balance milk supply with market demand,” Augusto said.

Dairy producers continue to face problems such as higher feed prices and rising energy and other input costs. The CDC has been fighting for the implementation of fair tariffs on unregulated imports of concentrated dairy solids that they say are displacing demand for U.S. produced milk and the mandating of effective oversight and market transparency in dairy sales.

The CDC, California Farmers Union, Holstein Association, Dairy Farmers of America and the National Farmers Union are looking to get the Dairy Price Stabilization Act signed into law to help improve producer prices and prevent another crisis in the dairy industry.


“This week’s meeting proved that there is widespread consensus among dairy producers for an effective federal inventory management process,” August said.

To contact Maegan Martens, e-mail or call 634-9141 ext. 2015.