CDFA ANNOUNCES FARMGATE MILK PRICE ADJUSTMENT FOR ENERGY COSTS

SACRAMENTO, December 21, 2001-Higher energy costs in 2001 have resulted in the California Department of Food and
Agriculture approving a farmgate milk price adjustment for processors of manufactured dairy products, such as powdered milk, cheese, butter, ice cream and yogurt.

CDFA establishes minimum prices for milk transactions between processors and producers. Although the latest adjustment is not anticipated to affect retail prices, that segment of the market is not regulated by the state.

The price adjustment, which goes into effect at the start of the new year, will reduce the farm milk value by an average of about two percent.

Milk processing is energy-intensive and hearings held last month by CDFA established that processors are paying significantly higher prices for energy compared to two years ago.


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FLEX YOUR POWER. To meet California’s energy challenge, CDFA urges businesses and consumers to conserve. For a list of simple ways that you can reduce demand and cut your energy costs, see our Web site @www.cdfa.ca.gov.