State ag department will consider petitions that contend Californiadairy producers are losing millions of dollars because of anundervalued whey factor in the state’s milk pricing system. Onecheesemaker calls the petition”s demands “obscene.” California”s dairy industry is gearing up for a May 31-June 1hearing that seeks to modify the whey value portion of thestate”s Class 4b formula. The hearing will consider petitions from two producer groups who believe California dairy producersare losing hundreds of millions of dollars each year because thewhey factor in the state”s milk pricing system isunder-valued compared to federal order levels. Processors disagree, saying another change in the 4b formula isunneeded and would hurt the industry”s competitiveness. Automatic Digital Blood Pressure Monitor
Western United Dairymen (WUD), one of the two petitioners, says that last year”s modification to the formula”swhey factor “does not provide a fair or legally sufficientmeans of determining the whey value as part of the Formula.” “Our members are concerned about and are suffering significantfinancial losses as a result of the large discrepancy between thewhey value contribution in the Formula and Federal Orders”Class III,” WUD notes in its May 18 Weekly Update. Since the new formula was implemented on Sept. 1, 2011, WUD says,the California whey value averaged $1.93 per cwt. below federalorder levels. Travel Weighing Scales Manufacturer
The second petitioner, collectively known as the”Coalition,” is comprised of California Dairies, Inc.,Dairy Farmers of America-Western Area Council, Land O”Lakes,Inc., Security Milk Producers Association, Milk Producers Council(MPC), California Dairy Campaign, and Alliance of Western MilkProducers. MPC’s Rob Vandenheuvel says the April discrepency betweenCaliforna’s Class 4b formula and the Federal Order Class III pricewas $2.29 per cwt. Over the past eight months, that difference hasaveraged $2.54 per cwt., giving California cheese manufacturers”a state-sponsored discount of at least $260 million.” Like many of the state’s cheese processors, Farmdale Creamery opposes the petition request. Farmdale says it — like othersmaller-scale cheesemakers — is struggling to dispose of its wheystreams at a minimal cost to its cheese operations. China Infrared Ear Thermometer
In a May 1, 2012, letter to the California Department of Food andAgriculture (CDFA), Farmdale officials Norman R. Shotts II andScott Hofferber also noted their company and all Californiacheesemakers have “suffered a significant increase in the costof whey disposal with the September 2011 implementation of the$0.25 to $0.65 sliding scale whey factor.”.