Milk Prices Crash: What Does This Mean for Family Dairies?

Jun 30, 2023

Amid a crisis of declining milk prices and widespread closures of dairy farms, the National Family Farm Coalition is advocating for a comprehensive solution to address the challenges faced by family-owned dairy operations. The proposed Milk from Family Dairies Act seeks to establish a minimum price that processors must pay producers, offering a long-term strategy to stabilize milk prices and safeguard the future of the industry.

At the heart of the proposal is an incentive-based system designed to prevent overproduction, a major factor contributing to price fluctuations. By sending signals to dairy farmers about market demand, the act aims to encourage responsible production practices. Dairy farmers exceeding the designated levels would receive different compensation from those meeting the demand, ensuring a fair and balanced marketplace.

To transform this vision into reality, advocates are striving to include the Milk from Family Dairies Act in the forthcoming U.S. Farm Bill, currently undergoing negotiation and anticipated to be voted on in the fall. The consolidation of processing plants, which often operate as regional monopolies, has exacerbated the challenges faced by dairy farmers.

The previous opposition from large processors, arguing that higher prices would burden consumers and reduce milk demand, underscores the urgency of addressing price volatility. Even minor fluctuations in milk production and demand can lead to significant price declines, pushing many family-owned dairy farms out of business or into the hands of larger competitors.

The alarming statistics paint a bleak picture, with over 70% of dairy farms closing nationwide and 50% of milk sales being generated by just 2,000 mega-dairies. The Milk from Family Dairies Act seeks to give dairy farmers security and stability, creating an environment that fosters sustainable practices and ensures fair compensation.

By implementing this act, the industry can protect family-owned dairy farms, promote market stability, and preserve the rich diversity of the dairy sector.

Source : wisconsinagconnection

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