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Dairy cooperatives say base programs seem to be working

Some dairy cooperatives implementing base production programs say farmers have become more accepting of efforts to better manage milk supplies.

Prairie Farms’ Chris Hoeger tells Brownfield their program started five years ago to better match what processing plants could accept and eliminate dumping milk during times of increased production.

“I think they’re really satisfied that what we’re doing at the co-op level, it’s really supporting the co-op needs and allowing the co-op to continue to grow and evolve,” he says.  “We review the program every four months to evolve the program to make sure it’s current with the current market conditions.”

Eric Erba with Dairy Farmers of America says their cooperative has had a similar program for the past two years.

“In the past with no program it was very easy just to add the additional 10 cows or 50 cows or 100 cows without really giving it much thought,” he shares.  “Now it’s more of a measured approach, ‘I’m at risk possibly for an over base charge if I’m producing this milk at the wrong time of year and I don’t have the base to cover it, maybe I should rethink this.’”

Both tell Brownfield farmers are still able to expand but since programs were put in place, milk production growth has moderated.

Interview with Brownfield’s Larry Lee.