IDFA organized four briefings this week for congressional and executive branch staff members to review the findings of the Informa Economics study that assessed supply-control programs in Canada, the European Union and New Zealand. Researchers from Informa presented an overview of the study, which found that, rather than reducing volatility, the government-mandated supply-control programs limit exports, create an economic incentive for imports, increase consumer milk and milk-product prices, and add layers of bureaucracy to government oversight systems.
"These briefings were well attended by staffers of legislators from dairy states as well as from the U.S. Trade Representative and U.S. Department of Agriculture staff," said Ruth Saunders, IDFA vice president of policy and legislative affairs. "The information presented will help many policymakers to fully understand the significance of supply-control policies on the domestic dairy industry and its export potential."
IDFA is committed to ensuring future growth in the dairy industry and supports efforts to increase risk-management tools available to dairy farmers. According to Saunders, supply-control programs would limit the U.S. dairy industry's expansion into emerging markets, where demand for dairy products has been rising, and they would have a negative impact on decisions to invest in new facilities that would increase demand for milk production.
View the presentation, "An International Comparison of Milk Supply-control Programs and Their Impacts."