New ODPA Milk Pricing Review Committee

In 2020, the ODPA Board of Directors activated a Milk Pricing Review Committee to better understand the issues that negatively affect the milk price dairy farmers are paid.

The role of the committee is:

• To seek insights and information about changes in dairy policy and pricing systems that are being contemplated by milk marketing cooperatives, farm organizations and industry experts  
• To facilitate a review of the current milk pricing system that establishes milk prices for dairy farmers and processors

 The intended outcome is:

• To identify a list of issues that need to be addressed, both short-term and long-term
• To identify potential solutions for a milk pricing system that is more responsive to market signals, fosters innovation and allows milk to move to its highest value use. This could result in improved profitability across all segments of the value chain
• To collaborate with dairy and farm organizations in pursuit of improving the milk pricing system and help define those improvements
• To facilitate a farmer education plan to help dairy farmers more clearly understand the issues and be informed about the options
• To establish a government affairs plan to educate and inform legislators and regulators of the problems with the current milk pricing system, share suggested modifications that would provide a more fair and equitable milk price to dairy farmers, processors, and consumers, and ask for their support in making the legislative and regulatory changes to accommodate the improvements recommended

The committee has been hosting external advisors, industry economic experts, academia and dairy business guests to gain insights and investigate the multitude of solutions that are being shared among farm organizations, milk marketing cooperatives, academia and the dairy manufacturing community. 

State dairy associations across the country are taking similar actions, and ODPA is pleased to share a recording of a recent webinar, hosted by the Minnesota Milk Producers Association and the Wisconsin Dairy Business Association. 

Assistant Professor Marin Bozic, Dairy Foods Marketing Economics, University of Minnesota, offers his insights and discusses the current state of Federal Milk Marketing Orders, what happened to PPDs in 2020 and reform impacts.  Click here for Marin Bozic’s slide presentation for post video reference.