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California Department of Food and Agriculture

CDFA STATEMENT TO USDA IN RESPONSE TO THEIR PROPOSED CALIFORNIA FMMO

CDFA to USDA Statement, May 12, 2017


CDFA STATEMENT AT USDA’S PUBLIC MEETING FEBRUARY 22, 2017

CDFA is looking at our authority to administer the CA quota system as USDA has outlined in their recommended decision to establish a CA FMMO. During this process we will determine if our current authority is sufficient, or if changes will need to allow California to administer a stand-alone quota program.

Once we complete the process we will publish our findings in the California Dairy Review, post on our website and provide a link for USDA to post on their website.

INDUSTRY INFORMATION REQUESTS


Data requests received by the California Department of Food and Agriculture (CDFA), in reference to the proposal submitted to USDA/AMS to establish a Federal Milk Marketing Order for the State of California, are listed below. CDFA is not in support or opposition of any proposal(s) that may be in development. The data below is for informational purposes.

Request / Data

FMMO EXHIBIT 61
AC: Class 1 Milk Fat SNF Other Pool Statistics August 2015 and Annual 2014 Update (1 page)

I: Monthly Quota Premiums and Regional Quota Adjusters January 2009-July 2015 (2 pages)

AB: Percent of Quota in Shipment for June 2015 (3 pages)

J: Production by County 1980-2010 (7 pages)

G: Annual California Milk Pool Production Quota Fat Quota SNF Percentage (8 pages)

AA: Average Market Price for the Transfer of Quota August 1969 — September 2015 (14 pages)

C: Blend Prices Based On Regulated Minimum Prices January 2000 — June 2015 (5 pages)

X: Bulk Imports Received Into CA Pool Plants January 1995 — June 2015 (5 pages)

Y: Bulk Imports Received Into CA Pool Plants January 2000 — June 2015 (5 pages)

S: Bulk Milk From California Cooperatives Diverted to Out-Of-State Plants January 2000 — June 2015 (5 pages)

V: Bulk Milk Skim or Cream Transferreed by Cooperatives to Out-of-State Plants January 2000 — June 2015 (5 pages)

W: Bulk Proprietary Milk Skim or Cream Transferreed by Cooperatives to Out-of-State Plants January 2000 — June 2015 (5 pages)

Z: Classification of Bulk Milk, Skim, and Cream Received by California Pool Plants January 2000 — July 2015 (4 pages)

O: Grade A Milk Used in Manufacturing Not Pooled January 2000 — June 2015 (5 pages)

P: Grade B Milk Used in Manufacturing Not Pooled January 2000 — June 2015 (5 pages)

T: Handlers with Production by city 2005 and 2015 (3 pages)

A: Historic Class and Pool Prices (29 pages)

R: Market Milk Farms by Hauling Area 2012 — 2015 (1 page)

Q: Milk Production and Quota Production By Area January 2012 — June 2015 (6 pages)

F: Monthly California Milk Pool Production Quota Fat Quota SNF Percentage (5 pages)

N: Number of CA Dairies by Herd Size July 2015 (1 page)

E: Pool Usage by Class by Area January 2010 — June 2015 (5 pages)

H: Transportation Allowances and Credits By Month January 2000 — June 2015 (3 pages)

B: Commodity Prices Used in California Class Price Formulas, 2000-2015 (6 pages)

D: Summary of Pool Pounds, Component Revenue, Fortification, Transportation Allowances, and Pool Percentages 2000-2014 (15 pages)

M: Monthly Ranch-to-Plant Milk Movement by Month, by Market Area, by Transportation Allowance Status, January 2009-December 2014 (In Pounds of Milk) (2 pages)

U: California Class 1 Sales Out-of-State, January 2000-December 2014 (In Gallons) – as reported in the previously published Dairy Information Bulletin, Table 7 (4 pages)

K: Commercial Production of All Milk in California, by County, by Month, January 2000-December 2014, In Pounds (30 pages)

L: California Total Milk Production, Fat, SNF, by Month, by County, 2000-2014 (75 pages)


Historical Documents


This page contains links to a collection of historic documents, as PDF files, that may be of value to those educating themselves on the history of the California milk pricing and pooling programs.

1961 Emphasis on SNF Component in Milk
Article from CDFA Bulletin regarding addition of "low-fat milk" and paying producers for SNF in Class 1 products.

1961 Measuring SNF
Technical article from CDFA Bulletin discussing measuring the SNF in milk.

1965 CDFA Bulletin The Story of Ca Milk Stabilization Laws
Article from CDFA Bulletin outlining the history of the Stabilization and Marketing Laws for California. Contributing authors included individuals that had worked on the 1930’s legislation and the implementation of the program.

1965 CDFA Bulletin Updated 1972 For Milk Pooling
Bulletin update written in 1972 to update the 1965 history of Milk Pricing Program. This includes information on the newly created Milk Pooling Program.

1967_11 First Draft Proposed Pooling Plan
First draft of the proposed Pool Plan.

1967_12 Second Draft Proposed Pooling Plan
Second draft of the proposed Pool Plan.

1968_1 Third Draft Proposed Pooling Plan
Third draft of the proposed Pool Plan.

1968_5 Fourth Draft Proposed Pooling Plan
Fourth draft of the proposed Pool Plan.

1968_9 Findings Pool Plan Order 1
Findings and Conclusions based on a series of hearings held statewide to consider the implementation of a Pool Plan. Contains considerable background discussion on a variety of pool related topics.

1969 Findings Pool Plan Order 4
Amendments made to original Pool Plan. Included adding new partially regulated Producer-Distributor per Assembly Bill 1086 (May 1969), as well as miscellaneous cleanup prior to the first pool.

1969 Findings Pool Plan Order 8
Changes made for accounting for interplant transfers, fortification with powder, pricing for milk sold out-of-state, location differentials, and a few additional changes to improve the operation of the pool.

1970 Findings Pool Plan Order 10
Discussion on Pool Plant requirements, allocation of quota, location differentials, payment of premiums by the pool, clarification of certain P-Ds, and adjustments to accounting methods.

1970 Findings Pool Plan Order 12
Added the North Sierra Marketing area to Pool area.

1971 Findings Pool Plan Order 15
Changed the accounting of bulk inventory from Class 2 to Class 4.

1972 Findings Pool Plan Order 18
Discussion on plant performance requirements, quota sale and allocation, state run dispatch system, and location differentials.

1973 Findings Pool Plan Order 21
Discussion of New Producer performance, added the Siskiyou marketing area to the Pool area, plant performance requirements, and "system pooling."

1974 Findings and Conclusions on Hearing Held Per Senate Resolution 114
Hearing held per request of the Senate via a Senate Resolution. It contains considerable discussion relative to purpose and history of program, producer and retail prices and Department authority.

1974 Recommendation for Legislation to CA Milk Marketing Law
CDFA recommendation to the Senate for Legislative changes. Contains some discussion on Pool history and purpose.

1974 Special Report to The Senate Committee 1974
Report to the Senate Committee on Agriculture and Water Resources, submitted at the request of the Senate. Contains history, observations and statistics.

1975 Findings Pool Plan Order 22
Dealing with New Entry producers and quota transfers.

1975 Legislative Analyst's Report on Ca Milk Pricing
A report on Ca milk pricing system written by the Legislative Analyst Office. This covers a bit of everything, including history and operation of the program.

1976 Findings Pool Plan Order 24
Change in the way new entry quota is allocated, and some administrative amendments. This was put to referendum.

1977 Findings Pool Plan Order 25
Hearing held to bring the Pool Plan into conformity with the Food and Ag Code. Specifically for the issuance of “blue Sky” quota and expansion of the PD exemption.

1978 Findings Pool Plan Order 27
Changes to some location differentials.

1979 Findings Pool Plan Order 29 And Stab Plans
Allowed for Call Provisions.

1979 Findings Pool Plan Order 30
Changes to some location differentials.

1979 Findings Pool Plan Order 31
Changed San Mateo county location differentials.

1980 Findings Pool Plan Order 32 And Stab Plans
Changes to some location differentials.

1981 Findings Pool Plan Order 35 And Stab Plans
Provided Transportation Credits on plant to plant movement of Class 1 milk.

1981 Findings Pool Plan Order 35 And Stab Plans
Created Transportation Credits for milk moved plant to plant for Class 1 usage.

1982 Findings Pool Plan Order 38 And Stab Plans
Split the Class 4 price into Class 4a and 4b. Changes to some factors in the pricing formulas.

1982 Findings Pool Plan Order 39
Allowed for the implementation (subject to referendum) of the Transportation Allowance (ranch to plant) and RQA system.

1983 Findings Pool Plan Order 43
Changed a RQA and Transportation Allowance rate, and required greater agreement on any future RQA changes.

1984 Economic Basis Oct Hearing No Change
Adjustments to the milk movement provisions.

1984 Findings and Conclusions Oct Hearing
Adjustments to the milk movement provisions.

1985 Findings Class 1 Price Freeze
Class 1 prices frozen for 4 months due to change in Federal support price changes, and the implication on the Class 1 price.

1987 Findings Stab Plans
Bring the Pool Plan and Stabilization Plans into conformity with the Food and Ag Code relative to Producer Security Trust Fund creation.

1988 Findings Stab Plans
Changes to Transportation Credit rates and areas.

1976 Comparative Statement

1981 Comparative Statement

1985 Comparative Statement

1990 Comparative Statement

1995 Comparative Statement

Quota by County 1970 1980 1985 1990 1995 2000 2005 2010 2015


Frequently Asked Questions/Answers

Questions on the Milk Pooling Comparative Statement 2013-2014