Advocacy
The Pennsylvania Association of Milk Dealers advocates for issues that impact our members and the dairy industry, including pricing and premiums. We advocate legislatively at the state level and work closely with the Pennsylvania Milk Board.
The Pennsylvania Milk Board (PMB) commissioned Ken Bailey Dairy Consulting to conduct a study to determine the impact of eliminating Pennsylvania’s minimum milk pricing system. I am attaching the study report “Economic Impact of Elimination of Pennsylvania’s Minimum Milk Pricing System.
The study concluded that eliminating minimum milk prices would result in a significant economic impact to the dairy industry. While fluid milk consumption may see a slight increase, the overall economic impact would not be good for Dairy:
Short- to medium-term 1.3% increase in fluid milk consumption
Decrease in farm milk prices.
Bankruptcy for 57% of fluid milk processors with 66% loss of fluid milk processing volume
$182 million loss to dairy farmers
$717 million loss to milk processors
$2.8 billion reduction in state-wide economic activity
$683 million in lost wages
10,047 jobs lost
Economic Impact of Pennsylvania's Minimum Pricing System
Over Order Premium (OOP)
The Over Order Premium is a distinctive benefit for Pennsylvania’s fluid milk plants because the Over Order Premium affords fluid milk plants an antidote to the burdens the Federal Milk Marketing Order places on fluid milk plants through mandatory regulation and the requirement to subsidize other classes of milk.
Read our expert’s testimony (Sara Dorland) offered at the PA Milk Marketing Board Meeting hearing on December 7th - 2022