No Turning Back on California Federal Order
California’s Department of Food and Agriculture (CDFA) pretty much made it official last week that there is now no turning back on Federal Order pricing for the state, which is to begin November 1.
CDFA issued an order October 10 terminating the state Dairy Marketing Branch, which oversaw the state order and enforced minimum milk prices in California for decades, says Geoff Vanden Heuvel, director of regulatory and economic affairs for the Milk Producers Council. The same CDFA notice also terminated the state Milk Pooling Branch, which had administered California milk pooling since 1969. Assessments that funded both branches ends October 31.
Then, on Friday, October 12, CDFA issued another notice establishing the Quota Administration Program (QAP), which will begin administering California’s milk quota program November 1. “The Marketing Division of CDFA will collect assessments on milk to fund the following programs: The QAP, The California Milk Advisory Board, the Dairy Council of California and the California Milk Processor Board,” says Vanden Heuvel.
“And so the transition [to a Federal Order] continues. Orderly, sure and seemingly irrevocable,” he says.