WFC Praises Gov. Doyle’s Proposal
to Spur Dairy Plant Modernization

MADISON, Wis. (January 24, 2008) – A cheese cooperative tax credit aimed at spurring development of new cheese plants in the state was among the economic stimulus proposals announced Wednesday by Governor Jim Doyle in his State of the State address.

“New and modernized cheese plants will allow Wisconsin cooperatives to increase sales and compete more effectively with other regions of the country,” said Wisconsin Federation of Cooperatives (WFC) President and CEO Bill Oemichen.  “We applaud the governor for recognizing the important role cooperatives and the dairy industry play in the state’s economy.”

 The tax credit is one component of Doyle’s “Next Generation Agriculture Plan,” designed to invest in cheese cooperatives, modernize meat and dairy processors, fund nutrient management and land conservation programs and enter growing international markets for whey.

Oemichen noted that an investment tax credit will provide a financial incentive for dairy plant modernization--much like the dairy investment tax credit has spurred substantial increases in state milk production. “This tax credit is intended to help leverage substantial investment by cooperatives and others in our state’s $20 billion dairy industry,” he said. Oemichen added that he and WFC members are working with the governor’s administration to craft a proposal that will provide an initial incentive to make the state of Wisconsin a financial partner with its modernizing cheese industry.