National Milk Producers Federation annual meeting last week and delegates heard a story of successes for the organization over the last year. NMPF President and CEO Jerry Kozak and Chairman Randy Mooney told delegates to the meeting the group accomplished four main goals over the last twelve months:
- Liquidating the surplus buildup of 200 million pounds of nonfat milk powder to prevent it from hindering price recovery on the market;
- Reactivating the Dairy Export Incentive Program (DEIP) to help sell more than 900 million pounds of products overseas;
- Raising the price support levels temporarily;
- More government purchase of cheese for federal food programs, which Congress ultimately funded as part of a $350 million dairy aid package.
It was also a very busy year for the Cooperatives Working Together program with three rounds of the herd retirement program. Kozak told the group, “Without CWT it would have taken another six months of 10 dollar milk prices” to bring equilibrium in production and consumption. Delegates were given the results of an independent analysis by Dr. Scott Brown of the University of Missouri which showed that “the combined effect of CWT’s cow-removal programs, as well as its export assistance program, helped raise farm-level milk prices by $1.54 per hundredweight this year, and added $2.4 billion to farm-level milk receipts.”
Members were hoping to get word from USDA as to when and how that $350 million dairy package in the ag appropriations bill will be implemented. Chris Galen with NMPF says they were told the details are still being worked out but it looks like the checks will be in the hands of producers before the end of the year.
The organization is still working on a number of issues including getting import tariffs on milk protein concentrates and imposing the dairy checkoff assessment on imports. They also noted that the Strategic Planning Task Force is continuing their work to come up with long-term recommendations for the industry. Galen says there are a number of things that need to be looked at and it is going to take time. He also notes that there is no indication that Congress wants to do anything with dairy policy ahead of the next farm bill.
Overall, Galen says the mood was good at the meeting as there are a number of indicators that the dairy market is turning around not only in the U.S. but around the globe.
AUDIO: Chris Galen discusses dairy issues 11:00
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