As farm bill discussions continue in the ag committees some dairy groups are submitting proposals to overhaul the Federal Milk Marketing Orders.
Economist Dr. Marin Bozek says a change is needed to provide more equity for dairy producers across the United States. Bozik is Assistant Professor in Dairy Foods Marketing Economics in the Department of Applied Economics at the University of Minnesota. He says, “The Federal Milk Marketing Orders work well is part of the country where there is a lot of fluid milk produced, like in the northeast and southeast. However, the complex pricing system currently puts the Midwest at a pricing disadvantage. He says, “For us here in the upper Midwest we have to focus on long term solutions that reflect the fact that we don’t have a lot of fluid milk, we are mostly cheese country here.”
He is proposing sweeping changes including a milk check transparency report so producers can understand their milk check and how their product is being priced verses other areas of the region. Bozik says the rules also need to mandate fairness in milk contracting to help the industry better manage risk. He says his is just one of several proposals in the industry.
