Dairy Foods logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Dairy Foods logo
  • NEWS
    • DAIRY REGULATIONS
  • PRODUCTS
    • New Products
    • Butter
    • Cheese
    • Cultured Dairy
    • Frozen Desserts
    • Ice Cream/Novelties
    • Milk
    • Non-Dairy Beverages
    • Sales Data
    • Whey, Milk Powder
    • Dairy Alternatives
  • INGREDIENTS
    • Cocoa
    • Colors/Flavors
    • Cultures/Enzymes
    • Fiber
    • Gums, Stabilizers, and Texturants
    • Inclusions
    • Omegas/Lipids
    • Prebiotics
    • Probiotics
    • Sweeteners
    • Other
  • OPERATIONS
    • SUSTAINABILITY
    • Equipment
    • Processing
    • Packaging
    • Food Safety & Sanitation
    • Membrane Technology
  • MEDIA
    • Dairy Foods TV
    • Podcasts
    • Webinars
  • DIRECTORIES
    • Buyers Guide
    • Dairy Plants USA
  • MEMBRANE FORUM
  • MORE
    • Associations
    • Dairy Foods' News & Views Newsletter
    • Blogs
    • Case Studies
    • Classifieds
    • Custom Content & Marketing Services
    • Dairy Foods Store
    • Market Research
    • Supplier Spotlights
    • Tradeshows and Events
    • Strategy Guides
  • AWARDS
    • Dairy Plant of the Year Award
    • Breakthrough Award
    • Dairy Processor of the Year
  • EMAGAZINE
    • eMagazines
    • Archive Issues
    • Contact
    • Advertise
    • SIGN UP!
    • Columnists
    • Dairy 100
    • State of the Industry Report

    Plan to Reduce Milk Supply Detailed, Criticized

    September 1, 2003
    The National Milk Producers Federation (NMPF) appears to be moving ahead with a plan to boost raw milk prices by removing milk from the U.S. market.

    The National Milk Producers Federation (NMPF) appears to be moving ahead with a plan to boost raw milk prices by removing milk from the U.S. market. The Arlington, Va.-based dairy producer organization has given some new specifics on how the program would work. Meanwhile, the International Dairy Foods Assn. has mildly objected to the program, while suggesting that a dismantling of the Federal Milk Order system would do more to help farmers without being counter productive.

    Late last month NMPF announced that its membership had voted in favor of the Cooperatives Working Together (CWT) program. The three-pronged program is designed to decrease the U.S. milk market by about 4.6 billion pounds during a 12-month period. The voluntary effort involves farmers being assessed 18 cents per hundredweight to fund a bid-driven reimbursement for farmers who reduce per-head production, cull herds, or increase exports.

    "This undertaking has received broad-based support because the price problem is a challenge facing all farmers, large and small, in the East, the Midwest, and out West," said Jerry Kozak, NMPF's president and CEO. "Everyone is suffering, and that's why we need everyone's commitment to be part of the solution."

    The price for raw milk, now below $11 a hundredweight, has hovered around a 25-year-low for the past 12 months, the organization says. It is hoped that a significant tightening of the market will result in about a dollar-per-hundredweight increase in prices during the coming year, NMPF says.

    But IDFA's Executive V.P. Connie Tipton says the proposal is a short-term solution at best.

    "Recent efforts by NMPF to find ways to prop up farm milk prices show broad agreement that current federal dairy programs are not working," Tipton said. "Our approach to finding a solution, however, would differ from the proposed CWT program. Instead, we believe it would be in the best interest of producers and processors to work together to fix the underlying problems with current policies rather than taking the band-aid approach of adding yet another program."

    Tipton also noted that that the long term prosperity of the industry will depend on "growing markets rather than restricting supplies."

    A detailed plan

    Whether it's in the best interest of the overall industry or not is yet to be seen, but the CWT plan appears to be quite detailed and well planned, for something that has emerged rather swiftly.

    Chris Galen, v.p. of communications for NMPF, says the incentives would include herd culling and in some cases herd retirement, but NMPF has been quick to point out that the culling would not have a major impact on the U.S. beef market. This is due in part to its timing to coincide with a slowdown in beef production. And the removal of a targeted 125,000 cows is not very significant in a beef market where 35 million cattle are slaughtered each year, the group says.

    Producers will also be able to participate by reducing per-head production. Galen says this could involve things like changes in feed mix, suspension of the use of RBST, or switching from three-a-day milkings to two-a-day. Those farmers participating will have to prove a 10% reduction in output.

    The program would also work to increase imports of cheese and butter. And an element that may be most crucial to processors is the creation of five different program zones. These would be coordinated so that cuts in the milk supply will not worsen the situation in areas like the upper Midwest where processors are already struggling with a decreasing milk supply.

    Galen said NMPF has the support of most major cooperatives and that it will work to make the program available to small co-ops and independent producers.

    "We have about 70% of our membership committed to the program," Galen says. "We're sort of in a building phase. Our board set up the structure, and from a practical standpoint we need to set up the administration." Two weeks after the program was voted on, Walter W. Wosje, the former general manager of one of the Michigan Milk Producers Assn., was hired as the CWT chief administrator.

    Share This Story

    Looking for a reprint of this article?
    From high-res PDFs to custom plaques, order your copy today!

    Recommended Content

    JOIN TODAY
    to unlock your recommendations.

    Already have an account? Sign In

    • Lifeway Organic Kefir in different flavors inside a refrigerated grocery shelf.

      Dairy Foods names Lifeway Foods 2025 Processor of the Year

      Lifeway Foods donates $10,000 to wildfire victims,...
      Cultured Dairy
      By: Brian Berk
    • Two female farmers are standing in a field, holding a large milk canister, looking at several cows at dairy farm.

      Honoring Women Leaders Shaping the Dairy Industry

      For the fourth consecutive year, Dairy Foods is proud to...
      Dairy Foods & Beverages
      By: Barbara Harfmann
    • Main feature for State of the Industry with dairy products album cover with a gradient circular--patterned backgorund.

      2025 State of the Dairy Industry

      Welcome to the 2025 State of the Industry report. For...
      Sales Data
    Manage My Account
    • eMagazine Subscription
    • Dairy Foods News & Views Newsletter
    • Online Registration
    • Manage My Preferences
    • Subscription Customer Service
    • Connect with Dairy Foods

    More Videos

    Popular Stories

    Close up of a whipped frozen dessert with a light green color.

    The keys to high-protein dairy formulations

    A young Asian mother holding her son and a sippy cup, an older woman is in the blurred background.

    Finding the right infant formula is crucial to a baby’s growth and development

    A row of Frios Gourmet Pops with a tie dye pattern as a background.

    How Frios Gourmet Pops delivers happiness

    Outlook Report: Women in Dairy

    Products

    Probiotic Ice Cream: Science and Technology

    Probiotic Ice Cream: Science and Technology

    See More Products
    Let's Talk Dairy podcast promo

    Related Articles

    • Nestle

      Nestlé discovers way to reduce fat in milk powder

      See More
    • IDFA members ask Congress to oppose limits on milk supply

      See More
    • Newsline: Organic Milk Supply About to Swell

      See More

    Related Products

    See More Products
    • From Milk By-Products to Milk Ingredients: Upgrading the Cycle

    See More Products

    Related Directories

    • Whey To Go

    ×

    Stay ahead of the curve. Unlock a dose of cutting-edge insights.

    Receive our premium content directly to your inbox.

    SIGN-UP TODAY
    • RESOURCES
      • Advertise
      • Contact Us
      • Directories
      • Store
      • Want More
    • SIGN UP TODAY
      • Create Account
      • eMagazine
      • Newsletter
      • Customer Service
      • Manage Preferences
    • SERVICES
      • Marketing Services
      • Reprints
      • Market Research
      • List Rental
      • Survey/Respondent Access
    • STAY CONNECTED
      • LinkedIn
      • Facebook
      • YouTube
      • X (Twitter)
    • PRIVACY
      • PRIVACY POLICY
      • TERMS & CONDITIONS
      • DO NOT SELL MY INFORMATION
      • PRIVACY REQUEST
      • ACCESSIBILITY

    Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

    Design, CMS, Hosting & Web Development :: ePublishing