Minnesota Milk Producers Association’s board of directors announced its endorsement of the Dairy CORE (COronavirus REcovery) program to aid the industry in an effort to right-size the new supply reality.
Working from a proposal created by National Milk Producers Federation and International Dairy Foods Association, Minnesota Milk sought to expedite aid, eliminate regional and seasonal disparities and limit market distortion while simultaneously adjusting supply appropriately.
Garrett Luthens, Minnesota Milk Policy Chair explains, by administering payments based on a historical number, keeping logistics simple and ensuring we are not altering any pre-planned marketing strategies, we believe the Dairy CORE Program is a good addition to what NMPF and IDFA laid out.
Dairy producers are hurting and at the same time, our creameries cannot afford to pay more. With exports, foodservice, and schools all operating under significantly different methods worldwide, the demand is simply not there for some dairy products. Many cooperatives and processors need to significantly alter their supply planning, and this direct payment will allow them the time and flexibility to do so, states Dave Buck, Minnesota Milk President.
We are encouraging USDA Secretary Sonny Perdue to explore a Dairy CORE type program through the $9.5 billion in discretionary funding he received through the CARES Act, says Minnesota Milk executive director Lucas Sjostrom.
While no one can be sure of the future of the markets that affected dairy farmers over the previous few weeks, it is clear our creameries need time to adjust supply, Sjostrom advocates for a $3 x three-month payment and encourages the Secretary to act immediately.
Minnesota Milk encourages dairy producers to contact their Senators, as well as Senate Ag Leadership Sen. Roberts and Sen. Stabenow. The U.S. Capitol switchboard will get in touch at (202) 224-3121.
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