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Pennsylvania Gov. Rendell Urges Milk Marketing Board to Help Dairy Producers Survive Low Milk Prices

Posted on: Thursday, 24 September 2009, 09:00 CDT

Requests Options within 30 Days

HARRISBURG, Pa., Sept. 24 /PRNewswire-USNewswire/ -- With Pennsylvania's milk producers facing prices that are 40 percent lower than a year ago, Governor Edward G. Rendell has written to the state's Milk Marketing Board asking for their recommendations on how to help dairy farmers survive the unprecedented financial hardships.

"Pennsylvania's dairy farmers are bearing the brunt of historically low milk prices, coupled with historically high production costs," said Governor Rendell. "The crisis is forcing dairy herds to be sold and farmers to cease operations, some of which have been family-owned and operated for decades. This crisis has thrown the largest sector of Pennsylvania agriculture into a free fall from which recovery remains uncertain at this time.

"Efforts are underway at the national level to address pricing and supply issues, but in Pennsylvania, the Milk Marketing Board can act to provide relief from these challenges and ensure our milk producers earn a reasonable return and profit for their hard work."

In a letter to the board's members, Governor Rendell requested an analysis and set of recommendations in the next 30 days that will outline what more the board can do at the state level to address the milk price collapse.

Under state law, the board is responsible for protecting the state's dairy industry and is charged with setting prices based upon all conditions affecting the milk market, including the amount necessary to yield a reasonable return to the producer.

In July, Governor Rendell, along with the governors of seven Northeastern states, called on U.S. Department of Agriculture Secretary Tom Vilsack to offer dairy producers debt forgiveness or a six-month extension on interest for USDA loans. The Governor has also directed the Pennsylvania Department of Agriculture to work with members of Congress, the General Assembly and the dairy industry to mitigate the damage to milk producers statewide.

"Too many Pennsylvania producers are struggling because of conditions beyond their control," said Governor Rendell. "We need to use all of our authority at the state and federal levels to take immediate action ensuring Pennsylvania's dairy industry remains competitive nationwide."

EDITOR'S NOTE: The text of Governor Rendell's letter to the board is included below.

Sept. 15, 2009

Mr. Dick Kriebel, Chairman

Pennsylvania Milk Marketing Board

4400 Red Rock Road

Benton, PA 17814

Re: Milk Pricing Collapse

Dear Chairman Kriebel:

The dairy farmers of Pennsylvania are suffering unprecedented financial hardship due to the collapse of milk prices paid to producers. As you well know, over the last year the prices paid to our farmers for their milk have dropped well over 40% in most instances. The current crisis is forcing dairy herds to be sold and farmers to cease operations which have been family-owned and operated for decades. This crisis has thrown the largest sector of Pennsylvania agriculture into a free-fall from which recovery remains uncertain at this time.

We are all aware of the efforts that have been made on the national level to attempt to address pricing and supply. However, the Pennsylvania Milk Marketing Board is the body invested by law with the power to address milk pricing on behalf of the Commonwealth of Pennsylvania.

The Milk Marketing Law states that the Board shall:

• Ascertain and maintain such prices paid to producers for milk as will be most beneficial to the public interest and best protect the milk industry of the Commonwealth.
• The board shall base all prices upon all conditions affecting the milk industry including the amount necessary to yield a reasonable return to the producer, which return shall not be less than the cost of production and a reasonable profit to the producer.
• Serve the legislative intent that the benefits of the minimum retail prices set by the Board shall be given to producers.
  

I am looking to you for leadership and input in this time of crisis. Based upon your staff's extensive expertise in the field and detailed knowledge and monitoring of the market forces at work, I am requesting that the Pennsylvania Milk Marketing Board develop an analysis and set of recommendations of what more can be done at the state level by your Board to address the milk price collapse within the Commonwealth of Pennsylvania.

I would like to receive your analysis and recommendations within the next 30 days. Every week that passes does potentially irreparable harm to the Commonwealth's dairy industry. Thank you and I appreciate your past and continuing efforts on behalf of the dairy farmers of Pennsylvania.

I look forward to your report.

Sincerely,

Edward G. Rendell, Governor

cc: Keith Bierly, Secretary, Pennsylvania Milk Marketing Board

CONTACT: Justin Fleming, Ag 717-787-5085 Michael Smith 717-783-1116

SOURCE Pennsylvania Office of the Governor

Source: PR Newswire

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