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AFBF members say milk pricing system needs review

American Farm Bureau delegates are calling for the dairy industry to reevaluate the Federal Milk Marketing Order system.

Ernie Birchmeier with Michigan Farm Bureau tells Brownfield their members and others at the recent national convention voted for AFBF to create a committee of dairy farmers to find solutions to milk pricing issues.

“This is an issue that goes across the county that we all need to deal with.  I think every order as an area or two in which they’d like to change.  There are some that would suggest we need a similar system.”

California’s dairy quota has dropped by nearly 40 percent from last year with dairy farmers in December losing $255 million in equity. Farmers decided to continue their state quota system when they switched from to federal order this year.  While some of the drop is tied to farmers exiting the business, Birchmeier says issues in California and other parts of the country highlight the need to review how milk is marketed and priced.

AUDIO: Brownfield interview with Michigan Farm Bureau staff