One of USDA’s first big decisions of 2007, at least as far as the dairy industry in concerned, is whether to change the Class I and Class II pricing formulas to include increases in the minimums for both classes. USDA held a public hearing in December to consider a petition from dairy producers to implement the change as quickly as possible.

Dairy processing facilities could be classified as "chemical plants" in the recently signed Department of Homeland Security Appropriations Act, which requires chemical plants to beef up security.

Under strong pressure from dairy processors, USDA has reversed itself and decided to speed up the agency's review of proposals to amend the Class III and Class IV milk price formula manufacturing allowances for all Federal Milk Marketing Orders.

Dairy producer and processors have joined forces to oppose proposed changes to USDA's Women, Infants and Children (WIC) program.

USDA is under increasing pressure from dairy processors who say the agency's sudden decision to delay implantation of updates to milk "make allowances" is costing the industry millions of dollars.

With work about to begin in the 2007 Farm Bill, USDA is attempting to frame the debate with a series of papers on a wide range of agricultural policy.

Milk Regulatory Equity Act Signed into Law
President Bush has signed the Milk Regulatory Equity Act, which brings into line federal and state milk marketing orders in Arizona, California and Nevada.

USDA's announcement that it had confirmed a third case of mad cow disease in the U.S. has triggered new pressure on federal regulators to tighten animal feed rules. Consumers Union, a major consumer organization, charged the government has been dragging its feet for two years.

Dairy exporters are hailing the opening of new talks with South Korea, aimed at creating a Free Trade Agreement between the two trading partners. The Asian nation is already the sixth largest importer of U.S. agricultural products.

In a final ruling in December, USDA modified the exemption for milk producer-handlers in the Pacific Northwest and Arizona-Las Vegas Milk Marketing Orders.