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Pennsylvania Governor Rendell Proposes New Milk Pricing Policy to Help PA Dairy Farmers

Posted on: Wednesday, 2 August 2006, 21:00 CDT

HARRISBURG, Pa., Aug. 2 /PRNewswire/ -- Governor Edward G. Rendell petitioned the Pennsylvania Milk Marketing Board today to do what it can to make sure dairy farmers get the most money possible for the milk they produce in the commonwealth.

The Governor asked that the board hold a hearing and use its authority to capture prevailing milk prices and premiums in other marketing areas.

"Dairy is Pennsylvania's largest agricultural industry and the milk produced here generates $1.5 billion in income for our economy," said Governor Rendell. "However, times are tough for our dairy producers right now. We have to take every action to protect and advance the industry."

Record-low milk prices and the ever-increasing costs on necessities such as fuel and feed are taking a toll on dairy producers' profits. Governor Rendell's proposal would help bring additional dollars back to the farm.

Milk produced, processed and sold within the state receives a premium above the current federal order milk price. However, if milk is processed or retailed in another state, the producer does not receive the premium. Only 20 percent of the milk produced in Pennsylvania is directly benefiting from this program. Governor Rendell's petition for a hearing could open the door for more premiums coming to Pennsylvania dairy producers, increasing their profitability and competitiveness in the market.

Pennsylvania has made great strides in advancing the dairy industry. In 2004, Governor Rendell initiated the Center for Dairy Excellence (CDE) which provides coordination and focus for the dairy industry and its associated resources, positioning the industry to become stronger and more profitable. The CDE is guided by the Dairy Task Force, an advisory panel of dairy professionals from all segments of the industry.

"The Center for Dairy Excellence has seen tremendous success," said Department of Agriculture Secretary Dennis Wolff. "Through the initial Dairy Profit Team program, which provides practical management tools, producers saw increased profits of $249 per cow in the first year."

Locally, the CDE coordinates 60 Dairy Profit Teams across the state, providing management assistance to the farms. Financial support is available to participating farms to offset the cost of some of the teams' work.

The Dairy Advocacy and Resource Team (DART), another CDE initiative, offers educational training to industry professionals routinely visiting dairy farms to deliver resources directly to the producer. DART is the only organized allied industry support program of its kind in the country.

For more information on Pennsylvania's dairy industry, or the Center for Dairy Excellence, call 717-346-0849 or visit http://www.centerfordairyexcellence.com/.

CONTACT: Kate Philips 717-783-1116 Jean Kummer (AG) 717-787-5085

Pennsylvania Office of the Governor

CONTACT: Kate Philips, Pennsylvania Office of the Governor,+1-717-783-1116; Jean Kummer, Pennsylvania Department of Agriculture,+1-717-787-5085

Web site: http://www.agriculture.state.pa.us/http://www.centerfordairyexcellence.com/

Source: PRNewswire

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