Co-op also says the dairy title of the next farm bill should include risk management tools for dairy producers.
VISALIA, Calif. — California Dairies, Inc. (CDI) said Tuesday it supports dairy producer margin insurance as a stand-alone program as offered in the Goodlatte/Scott Amendment to the Dairy Security Act.
Furthermore, the dairy title of the next farm bill should include risk management tools for dairy producers, the California dairy cooperative said.
"Both milk and feed markets have become characterized by extreme price volatility, and, consequently, dairy producers have had to work toward developing some proficiency with hedges and forward contracts," CDI said in a news release. "These traditional risk management tools have not been easy to learn or navigate for many producers, which has led to much more interest in the development of a margin insurance program. "
CDI applauds Congressman Goodlatte, who has taken the time to conceive an alternative program that will allow dairy producers to better manage their margins. The voluntary program provides a viable safety net for dairy producers without requiring them to be subjected to government-run supply management constraints, CDI said.
CDI is the largest member-owned milk marketing and processing cooperative in California producing 47% of the state’s milk. Co-owned by more than 430 dairy producers who ship 18 billion pounds of Real California Milk annually, California Dairies, Inc. is a manufacturer of quality butter, fluid milk products and milk powders. In addition, California Dairies, Inc. is the home of two leading and well-respected brands of butter – Challenge and Danish Creamery. California Dairies’ quality dairy products are available in all 50 states and in more than 50 foreign countries.