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Hearing Witnesses Agree: Federal Dairy Policies Not Working
On May 20, the House Agriculture Subcommittee on Department Operations, Oversight, Nutrition and Forestry heard from three panels of witnesses which included IDFA Executive Vice President Connie Tipton that current federal dairy programs are not working very well, but there was little agreement on what to do next. The subcommittee called the hearing to gather input regarding low farm milk prices. Several dairy economists presented market data, laying out the current inbalance between supply and demand. In addition, they confirmed that imports of milk protein concentrate (MPC), casein and caseinates are not the cause of lower domestic milk prices. U.S. Department of Agriculture (USDA) Chief Economist Keith Collins also vigorously defended his department from charges from the National Milk Producers Federation (NMPF) that USDA has "mishandled" the dairy provisions from the 2002 farm bill.
During her testimony, Tipton outlined how current federal policies are distorting dairy markets, creating a fractured dairy industry and inhibiting the industry's ability to adjust to changing economic conditions and new market opportunities. She also brought along samples of flavored single-serve milks to illustrate how innovative, value-added milk products battle for markets and the need to reduce impediments to growing those markets. To review Tipton's full testimony, click here.
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Posted May 27, 2003
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