The eight members of the California Dairy Leaders Program received an intense immersion in dairy market economics this week during a three-day session at the Modesto office of Western United Dairymen. The group heard from speakers discussing a wide range of topics related to milk pricing, including the history of the California milk pooling system and the out-of-state threats to the California system.
“It
was a great opportunity for the class to hear first-hand about the unique nature
of California’s pooling system and the many challenges the system faces,”
pointed out CEO Michael Marsh. “They are able to learn about the differences
between the federal and California systems, and the advantages the California
system offers. I think everyone agreed after the sessions were done that
understanding dairy economics is critical for this industry’s future leaders.”WUD Director of Economic Analysis Tiffany LaMendola set the stage with an overview of the state’s pricing formulas and pooling system. Past WUD President Domenic Carinalli added the historical perspective as a participant in the contract system that existed prior to pooling. He explained why producers pulled together to form WUD in the face of economic uncertainty. Marsh outlined the ongoing out-of-state threats to California producers as evidenced by the Hillside/Ponderosa litigation. Dr. Bill Schiek, economist with the Dairy Institute of California, updated the class on issues surrounding producer-handlers and the unregulated areas of the country that are not covered by either a state or a federal order.
Comparisons of the federal milk marketing orders and the California system were provided by Tom Gossard, senior economist with the CDFA Dairy Marketing Branch, while David Ikari, chief of the Dairy Marketing Branch, offered insight into the retail pricing of dairy products. Other CDFA speakers discussed the value of quota and how to sell, buy and transfer it, as well as how to understand the monthly milk statements.
Next, the dairy leaders travel to Washington DC to learn about federal legislative and regulatory issues. This year’s class members are Grant Ahlem, Hilmar; Devin Gioletti, Turlock; Jack Hoekstra, Oakdale; Aaron Matheron, Hilmar; Paul A. Mendes, Riverdale; Monique Moretti, Petaluma; Jeff Strom, Hilmar; and Paul Zimmerman, Marshall.
