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California approves milk quota program

 

California dairy farmers have voted to continue their quota program if a Federal Milk Marketing Order is finalized for the state.

Nearly 90 pecent of dairy farmers representing more than 90 percent of the milk of voters approved the referendum.

California currently uses a state milk marketing order but is awaiting approval from the USDA to replace it with a federal order. The state’s quota system allows farmers to pool their milk and more evenly distributes payments.

A report by RaboResearch says a federal order would slightly increase the milk price in California and stabilize production. Analysts say it would also give more flexibility to processors.

USDA has not issued a final rule on the proposed California Federal Order.