IDFA sets February deadline for milk marketing order contracts

ORLANDO, Fla. — Michael Dykes, president and chief executive of the International Dairy Association, said Monday that the IDFA and the National Milk Producers Federation will not reach agreement on proposed reforms to the federal milk marketing mandate by the week of February. told reporters if. 20, the IDFA submits its own petition to the USDA, which he seeks to modernize the system.

IDFA represents dairy processors, but members also include farmer-owned dairy cooperatives involved in processing. NMPF represents farmers and their cooperatives.

Both groups have worked towards modernizing the regional system of setting minimum prices that processors must pay for milk and its ingredients. Agriculture Secretary Tom Vilsack says he wants the industry to make one suggestion before starting the modernization process.

Dykes made a statement to reporters after giving a broad speech to IDFA membership during a press conference at the IDFA’s Annual Dairy Forum.

Dykes said the IDFA’s work on the proposal has focused on “tolerances,” which are estimates of the cost of processing milk into finished dairy products such as butter and cheese. am. He said the make him allowance his formula was last set in 2006 and that IDFA members believe it should be raised as various costs have risen.

Dykes said NMPF members have different issues they want to address in the reform process.

Dykes said the IDFA is asking Congress in the Farm Bill to give the USDA the authority to require companies to report their costs.

The IDFA first passed the benefit payment proposal last week and plans to submit it to the five segment boards on February 6. If those boards agree, Dykes said he has discussed holding a joint meeting with NMPF president and CEO Jim Mulhern the week of February. 20.

Dykes said he believes the NMPF is also developing a new formula for setting make-up allowances, but has not seen it.

If there is no resolution at the late February meeting and no hope of unity, the IDFA will independently petition the USDA.

Dykes said he was optimistic that a deal could be reached.

Mulhern also attends IDFA meetings. In an interview before Dykes held a press conference, Mulhaan described the reform project as “a work in progress.” Mulhern said the NMPF, where he has held more than 150 meetings, is still working on formulating Class I milk used to make beverage products.

Mulhern said there are still differences with the IDFA, but he hopes to have further discussions with the IDFA.

Asked about Dykes’ February deadline, Mulhaan said in an email.

“It is important to try to find common ground on these issues to maximize the chances of getting the necessary changes through the USDA approval process.”