California Producers Want State Ag Department to Reconsider Whey Decision

California dairy producer groups want the state agriculture department to reconsider its recent decision to remove the whey factor from the milk pricing formula.

Western United Dairymen (WUD), Milk Producers Council and others say the Nov. 20 decision by the California Department of Food and Agriculture (CDFA) fails to consider the negative economic impact to the state’s dairies. WUD calculates that a 700-cow dairy producing 75 lb/head per day will see its milk check revenue shrink by almost $15,000 per month.

WUD has filed a petition with CDFA requesting reconsideration of the decision.

“This decision makes California dairy producers noncompetitive with farmers in surrounding states,” said WUD president Ray Souza.

CDFA’s decision takes effect with December production. It changes the whey factor in the 4b formula to a 25-cent fixed amount. The decision also increases the cheese make allowance in the Class 4b formula and boosts the nonfat dried milk make allowance and butter f.o.b. adjuster in the Class 4a formula.