(Green Bay, Wis). The much-anticipated initial recommendations for Federal Milk Marketing Order reform were released today, signaling the next stage of the process is about to begin. We now have a clearer view of what changes the Agricultural Marketing Service proposes, which includes an innovative proposal by Edge Dairy Farmer Cooperative in the growing sector of Extended Shelf Life (ESL) fluid milk.
“We will need a few days to analyze today’s report thoroughly, but what we can say is we appreciate the thorough and dedicated work the AMS team did in curating all the testimony, written responses and market analysis done to get us where we are today,” Tim Trotter, Edge CEO said.
Over the past several months, Edge staff, board members and farmers, have engaged in the reform process through testimony and written statements. Edge staff attended the hearings in Carmel, Ind. bringing forward proposals important to our dairy farmer members.
Edge’s proposals focused on improving price discovery, maintaining strong risk management and sustaining federal orders to benefit the entire dairy community.
Specific proposals submitted by Edge included:
- Class I pricing for Extended Shelf Life (ESL) fluid milk processors based on which version of the market they participate in – this allows ESL processors to maintain risk management options and white milk gallon bottlers to continue business practices as usual
- Updating the fat components alongside updated protein numbers
- Delaying any changes that would impact pooled milk prices for 15.5 months, to ensure open interest and opportunities to participate in markets are not interrupted
- Modernizing the Class III pricing system to include both blocks and barrels of Cheddar cheese, rounded to the nearest 5% of production
- Standing against make allowance increases, which equally lower milk prices for all farmers
- Improving the Class I mover by introducing the Class III Plus program, which includes the removal of advanced pricing, to price milk on America’s most-used dairy commodity – cheese
“Today’s announcement provides us a preview of the official recommendation, which will be published in the Federal Register sometime in the next few weeks,” said Lucas Sjostrom, Edge Managing Director. “Once the recommendation is published, the clock starts. From the day of publication, there will be a 30-day window to provide feedback to the AMS; 60 days after public comments close the AMS will release their final recommendation. We anticipate there will be a period of education between the final recommendation and when farmers will need to vote. We anticipate a vote to take place sometime close to early 2025.”
Edge will continue to work on behalf of dairy farmers through all stages of the reform process. Edge believes every dairy farmer should have the chance to cast their own ballot and vote on whether to accept or reject the proposal. Our role will be to help inform them as to how these recommended changes will impact their businesses.
“We will carry the wishes of our board and members through to the final stage of this reform process. But when it comes to casting a vote – we believe the farmers have the right to cast their own vote, rather than Edge casting a block vote on their behalf,” Trotter said.
Edge will continue to provide updates on the process on its website www.voiceofmilk.com and through member communications.
About Edge:
Edge Dairy Farmer Cooperative provides dairy farmers throughout the Midwest with a powerful voice — the voice of milk — in Congress, with customers and within their communities. Edge, based in Green Bay, Wis., is one of the top cooperatives in the country based on milk volume. For more information, visit voiceofmilk.com.
Comments