Dairy Co-op Pays Members Nearly $2 million in 13th Check Funds

October 19, 2009 07:00 PM
 

Source: Maryland & Virginia Milk Producers Cooperative news release

 

Maryland & Virginia Milk Producers Cooperative distributed nearly $2 million in 13th check funds late last week to help members make it through one of the worst years dairy farmers have ever faced. The payment represents 10 cents/cwt on milk shipped through the cooperative from January to August. 

 

"Our members are struggling and these low milk prices have taken their toll on morale and wallets,” said President Dwayne Myers. "We are fortunate to sell our milk in a Class I marketplace, to have negotiated premiums and captured marketing efficiencies that create more returns for our members.”

 

Typically the cooperative distributes its 13th check in February for the previous year. "Given the extreme financial circumstances all dairy farmers are facing, sending out a portion of the 2009 13th check early is one of the easiest decisions our board has made this year,” Myers added.

 

In total, the cooperative sent out 10 cents/cwt on approximately 1.9 billion pounds of milk produced by the membership from January to August 2009. Funds accumulated on production from September through December 2009 will be distributed in February 2010.  The 13th check represents each producer's share of profits, savings and efficiencies captured in the marketplace.

 

This is the second time this year Maryland & Virginia's board has taken action to distribute cooperative funds to the membership ahead of schedule. Maryland & Virginia distributed a 50 percent advance payment on 2008 patronage equity in May 2009. The remainder was distributed the first week in September. 

 

The marketing and processing cooperative represents 1,500 dairy farmer-owners from Pennsylvania to Georgia.  It operates three fluid processing plants: Marva Maid in Newport News, Va., Marva Maid of Landover, Md., and Maola Milk and Ice Cream in New Bern, N.C.; manufacturing plants in Laurel, Md., and Strasburg, Va.; and a farm supply warehouse in Frederick, Md.

 

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