The Agricultural Marketing Service will publish a proposal for a California Federal Milk Marketing Order (FMMO) on Feb. 14, says Agri-Pulse. The order would regulate product prices between farmers and first buyers. California, which produces about 20 percent of the nation’s milk, is the only large dairy state that doesn’t have an FFMO.
Milk prices under the proposal “would reflect national prices for manufactured products and local prices for fluid milk products, fostering greater equality for California producers and handlers in the markets where they compete,” says the AMS. “Under the recommended order, handlers would be assured a uniform cost for raw milk, and producers would receive uniform payments for raw milk, regardless of its use.”
If the proposal passes, the FFMO price formulas would override those formulated by the California Department of Food and Agriculture. The FFMO price formulas are derived from “national end-product sales surveys conducted by AMS” says the proposal.
A hearing to review the proposal is slated for Feb. 22 in Clovis, Calif.