California dairy producers voted last week to establish a new Federal Milk Marketing Order (FMMO) for the state. The vote was the penultimate step in a long process that will culminate with the new order taking effect on November 1, 2018. The order will adopt the same dairy product classification and pricing provisions currently used throughout the FMMO system.
California accounts for more than 18 percent of U.S. milk production and is currently regulated by a state milk marketing order administered by the California Department of Agriculture (CDFA). Once this new FMMO takes effect, over 80 percent of the U.S. milk supply will fall under the FMMO regulatory framework.
The U.S. Department of Agriculture will assume responsibility for regulating the statewide order. While USDA will be responsible for maintaining the order, CDFA will continue to administer California’s producer quota, a separate, smaller system that gives a premium milk price to a limited amount of California producers.
To facilitate a smooth transition, USDA is embarking on an educational campaign during the summer months to ensure that all handlers are briefed on how the new order will operate. USDA will publish the “Announcement of Advanced Prices and Pricing Factors” on Oct. 17, 2018, with all handlers required to comply on Nov. 1.
For more information, visit USDA’s Agricultural Marketing Service website.
Members with questions may contact Dave Carlin, IDFA senior vice president of legislative affairs and economic policy, at email@example.com.