Voluntary pooling biggest issue in CA milk marketing proposal

California dairy co-ops and milk producers have a lot to evaluate in USDA’s recommended proposal for establishing a federal milk marketing order for the state, which has long operated under a state order. The biggest difference in the two is that California’s order regulates all milk prices, and all processors must pay those minimum prices established for different utilizations. In federal orders — and the proposed order for California — only Class I, milk for fluid consumption, is regulated and manufacturers of dairy products can choose whether to participate in the pool and pay minimum prices. Participation in the pool results in a blend price to producers based on minimum prices and utilization. Co-ops and producers wanted mandatory pooling to be a part of the federal order.