National Farmers Union
--Urges Allies to Help Restore Profitability to One of America's Vital Industries--
MEADVILLE, Pa. (August 30, 2000)-National Farmers Union (NFU) today urged major dairy cooperatives and plants around the country to halt their purchase of imported non-fat-dry milk until the Class IV price has reached a level of $14.50 per cwt. This call comes in the light of low dairy prices, increased purchases of surplus non-fat-dry milk produced in the U.S. by the Commodity Credit Corporation (CCC), and a 600 percent increase in imports of milk protein concentrate (MPC) since 1995.
"The farmers I have spoken with while traveling around the country have all urged action to provide price relief," said NFU Leland Swenson. "In this low-price climate, it is alarming that the CCC has to purchase surplus powdered milk product in the U.S. at a time when we are seeing an increase in their imports."
Farmers Union is calling on dairy cooperatives and plants to take the following steps:
1. Stop the purchase of any imported non-fat dry milk or MPC until the Class IV price has reached a level of $14.50 per cwt.
2. Support the call for a federal investigation to see if any plants use imported MPC in the production of natural cheese.
3. Support implementation of greater accountability of imported MPC through end use certification by all processing plants and increased surveillance and enforcement by state and federal agencies.
Due to low prices, the CCC has been making purchases of dairy products, the majority of which is non-fat-dry milk. The excess supply, and the resulting low prices, can only be aggravated by bringing in more imports.
"While Congress is considering whether to provide a limited amount of relief to dairy farmers, possibly $443 million, this will make up only a fraction of the amount producers have lost as a result of the unusually low market prices," said Swenson. "Dairy farmers need allies in restoring profitability to the industry and stemming the loss of dairy farmers.":
