California Hearing Will Probe Milk Order Changes

August 23, 1999

The California Department of Food and Agriculture (CDFA) will hold a public hearing on the state's milk pricing system and federal milk marketing order reforms. California's milk price adjustments don't kick in except every two months; for other areas of the country, changes are implemented every month. Proposals are being sought to bring the state's prices into closer alignment with the federal order system.

Unless Congress intervenes with legislation to change part of the proposed pricing system, order reforms will be implemented Oct. 1. It is assumed milk producers approved the reforms in a referendum held earlier this month.

CDFA says prices in federal orders, which exclude California, are calculated and adjusted, if necessary, each month. IN California, minimum farm milk prices are calculated every two months. Because California's pricing system differs, the effect of any national milk shortages will not be reflected in the state's minimum farm milk prices until Oct. 1, even though a significant decline in milk production in some regions of the country will be reflected in the Sept. 1 announced farm milk prices in federal orders.

The California hearing will be held Sept. 21 in Sacramento with an informal public workshop scheduled for Sept. 14 to review and discuss any proposals for changing the state system that were submitted to the CDFA.