Wisconsin and Minnesota Cooperative Leader Applauds
USDA Decision to Raise Dairy Price Supports
MADISON, Wis…Wisconsin and Minnesota cooperatives applaud USDA Secretary Tom Vilsack’s decision to raise dairy price supports through the Dairy Product Price Support Program during a time of near-record low dairy prices. “Wisconsin and Minnesota dairy cooperatives handle more than 85% of the milk produced in the two states,” said Cooperative Network President & CEO Bill Oemichen, ”and this extra financial support at a very difficult time is greatly needed, and is greatly appreciated, by the Upper Midwest dairy industry.”
From January through April of this year, the price of milk paid to dairy farmers has been about $4.80 per hundredweight below the cost of production. Dairy producers have lost $3.9 billion in equity in 5 months, placing at risk the dairy industry’s long-term stability, the nation’s cooperative milk production and processing infrastructure, and the economic health of Wisconsin and Minnesota rural communities.
The global recession has significantly decreased international demand for dairy products, accelerating the price decline that typically occurs in the summer months. Oemichen noted, “This pricing volatility is very difficult for dairy producers to manage because producers are unable to control many of their production costs. Today’s decision will help to reduce this volatility in part, but there is much yet to be done, including passage of the FY 2010 Agriculture Appropriations Bill, which is expected to have additional provisions to help the struggling dairy industry.”
Oemichen noted the key role played by members of the Wisconsin and Minnesota congressional delegations to obtain the extra aid from USDA. On July 29, U.S. Senators Herb Kohl (D-Wisconsin), Russ Feingold (D-Wisconsin) and Amy Klobuchar (D-Minnesota) met with USDA Secretary Tom Vilsack, along with other members of the U.S. Senate. Oemichen said, “We are grateful for the active support of our congressional leaders and we welcome their continuing active involvement in this very important economic issue for our two states.”
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