money
April 7, 2016

Land O’ Lakes Implements Nationwide Base Plan

 |  By: Anna-Lisa Laca

Milk production in the U.S. has grown substantially over the last 10 years. From 2000 to 2014 the amount of milk produced in America has grown 23.1%. Combined with production increases around the world, supply is outpacing demand and milk prices have fallen.

In response to the glut of milk, Land O’ Lakes will have a nationwide base plan fully implemented this year.  “By instituting a Base Program, we are acting as an industry leader to implement more structure and discipline and be in a better position to capture market opportunities to maximize the value of member production,” officials say.

Details on the base program have not been disclosed; however, Land O’ Lakes officials say they have had similar programs in place for California members since 2008 and for Bismarck, N.D., members since September 2006. The co-op introduced a Base Program in their Eastern and Upper Midwest regions earlier in 2016.  

It is unknown at this time if other co-ops will follow suit. Dairy Farmers of America, the nation’s largest dairy cooperative, says it doesn’t intend to implement a nationwide program this year.

"At this time, DFA does not have any plans to establish a national quota/base plan for our membership,” says John Wilson, Senior Vice President and Chief Fluid Marketing Officer. “As the movement of milk is very regional, supply management decisions are handled region by region.” 

Has your cooperative notified you of base plan intentions? Let us know in the comments below.

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