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From The MPC Newsletter
May 1, 2009

Major Development for the Growth Management Plan
By Rob Vandenheuvel

This week, the Holstein Association USA, which boasts 30,000 members nationwide, unveiled the “Dairy Price Stabilization Program.”  This program is virtually identical to the Growth Management Plan (GMP), which readers of this newsletter have been hearing about for quite some time (and for those that haven’t, I would encourage you to check out http://www.milkproducerscouncil.org/q&a_gmp.htm).  Like the GMP, the “Dairy Price Stabilization Program” would create a tangible financial incentive for dairies to manage the amount of milk they produce, thereby keeping a better balance of supply and demand (more information on the “Dairy Price Stabilization Program” will be provided in upcoming articles).

MPC is extremely excited about this development, and supports the work of the Holstein Association.  The opportunity to make positive changes to our national dairy industry is upon us, and folks throughout the country are recognizing that.  As I wrote in our newsletter last month, MPC has been meeting with producer groups from all over the U.S. and there is increasing momentum for implementing a program like what MPC and the Holstein Association are promoting.

Our leadership in California needs to be engaged in this debate.  An industry task force that MPC President Syp Vander Dussen serves on is meeting next Monday (May 4th), and I would urge the task force members to move quickly and come up with industry recommendations.  We have a window of opportunity for rallying the dairy industry around positive change and we just don’t know how long it will last.  We have all seen the short memories this industry tends to have.

So whether our industry leaders support the Growth Management Plan or not, it is time to take a position.  Because one thing is abundantly clear: if we do nothing, we are guaranteeing ourselves that at some point in the near future, we’ll be right back on the losing end of this extremely volatile milk price.

 

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