Edge Dairy Farmer Cooperative recently announced that the initial recommendations for Federal Milk Marketing Order reform were released, signaling the next stage of the process is about to begin. These offer a clearer view of what changes the Agricultural Marketing Service proposes, which includes an innovative proposal by Edge Dairy Farmer Cooperative in the growing sector of Extended Shelf Life (ESL) fluid milk.
Over the past several months, Edge staff, board members, and farmers have engaged in the reform process through testimony and written statements, and staff attended the hearings in Carmel, Indiana, bringing forward proposals important to their dairy farmer members.
Edge’s proposals focused on improving price discovery, maintaining strong risk management, and sustaining federal orders to benefit the entire dairy community.
Specific proposals submitted by Edge included:
- Class I pricing for Extended Shelf Life (ESL) fluid milk processors based on which version of the market they participate in – this allows ESL processors to maintain risk management options and white milk gallon bottlers to continue business practices as usual
- Updating the fat components alongside updated protein numbers
- Delaying any changes that would impact pooled milk prices for 15.5 months, to ensure open interest and opportunities to participate in markets are not interrupted
- Modernizing the Class III pricing system to include both blocks and barrels of Cheddar cheese, rounded to the nearest 5% of production
- Standing against make allowance increases, which equally lower milk prices for all farmers
- Improving the Class I mover by introducing the Class III Plus program, which includes the removal of advanced pricing, to price milk on America’s most-used dairy commodity – cheese
Edge will continue to work on behalf of dairy farmers through all stages of the reform process. They will also provide updates on the process on voiceofmilk.com and through member communications.
