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Organic dairies have Marketing Order concerns

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Organic dairy farmers and processors have issues they would like to bring up should the USDA hold hearings on the federal milk marketing orders.

Adam Warthesen with Organic Valley says they have worked with seven other dairy processors and organic companies as the Milk Innovation Group to identify six changes needed to help fluid milk and value-added milk. “We are looking at how do we bring innovation and investment to value-added milk, the area that is growing for consumer consumption, and how do we make sure the burden for the 16-hundred farmers we represent doesn’t increase for our pooling and for our contribution to federal pricing.”

The changes include allowing processor hedging, eliminating the base $1.60 Class I differential, updating the shrinkage allowance for extended shelf-life products to 5%, exempting organic milk from producer settlement fund payments, and establishing a balancing credit for specialty fluid milk.

Organic dairies have Marketing Order concerns

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