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USDA Dairy Industry Advisory Panel meets

U.S.Ag Secretary Tom Vilsack’s Dairy Industry Advisory Committee met again recently in Washington, Wisconsin Ag Secretary Randy Romanski says they are looking at ways to “smooth out the volatility in the dairy markets.” Romanski says the Committee is very diverse and represents all aspects of the dairy industry across the country but they are determined to have recommendations to Ag Secretary Vilsack by the end of the year.

A number of interests like the National Milk Producers Federation, Holstein Association and others have put forth proposals for dairy policy, Romanski says they are looking at those proposals and may choose to take ideas from a number of the plans when making their recommendation, they are also taking into consideration the information gathered at the competition workshop held in Madison earlier this year.

The group is also looking at whether or not the Chicago Mercantile Exchange is the best avenue for price discovery. When pricing moved from the National Cheese Exchange at Green Bay to the CME it was hoped there would be more trading but that has not necessarily happened.

One of the biggest challenges facing the dairy industry in the near term is the lack of available credit. Dairy producers have seen their equity erode at the same time bank regulations have tightened up, Romanski says the Farm Service Agency has been able to help and the Committee is looking at what else could be done to help out.

AUDIO: Romanski talks about the committee