FOR IMMEDIATE RELEASE: October 06, 2009

Professional Dairy Managers Of Pennsylvania Proposes Policy Changes To Ensure Dairy Industry’s Future

Bellefonte, PA – Today the Board of Directors of the Professional Dairy Managers of Pennsylvania (PDMP) issued a strong statement to government leaders about steps that must be taken to ensure the future of the dairy industry. Long Term Viability of the Dairy Industry outlines four position statements for an industry that PDMP refers to as being at “a critical juncture” given the current economic climate and growing pressures on how dairy farms operate.

The search for permanent solutions was a driving force in the development of the statements.

In presenting the newly created position paper to PDMP members President Rod Hissong told them, “The PDMP Board has been guided by the overall philosophy that it is in the best interests of the industry to make constructive changes based on a desire to create permanent, long-term solutions that will ultimately make the dairy industry stronger. “ He added, “Given these desperate times, many solutions are being proposed by various sectors of the industry. We are aware some of these solutions would provide immediate short-term relief from our current problems; however, they are not long-term solutions for the industry.”

The four position statements summarize the core beliefs of the association and flow from the association’s mission to advance the dairy industry through improved productivity and profitability. The paper is also a call to action for the industry which PDMP says “must act to guarantee that it will continue to be a leading force in the U.S. and World economies and to guarantee that consumers will continue to have access to a supply of dairy products produced within its own borders.”

In keeping with the positive, progressive-minded attitude of the association’s membership, PDMP is making the following recommendations on dairy policy:

1. PDMP believes that, in general, the dairy industry would be best served if the government stopped purchasing excess dairy products, many of which are not made to world specifications. These products need to be replaced by products that can be sold on the world marketplace.
2. PDMP believes that the Federal Pricing System needs overhauled.
3. PDMP believes that the industry should be focused on economic growth rather than supply management.
4. PDMP believes that direct government payments are short-term solutions to long-term problems.

Hissong said a key foundation of beliefs PDMP shares is that “Given the honest opportunity to complete in the world marketplace, the dairymen in the industry that can adapt and manage effectively will succeed.” He directed people to the PDMP website (www.pdmp.org) to learn the background for each of the four statements by reading the full paper.

In detailing the position on government purchase of excess dairy products, the paper refers to it as a policy that “has caused manufacturers to become complacent in products they produce. PDMP says that if the government ceases to buy products that no one wants manufacturers will begin to make products to world specifications so they can be sold in a growing international marketplace that is in need of dairy products.

The paper also offers compelling rational for the recommendation that the Federal Pricing System be overhauled. PDMP believes current pricing using the Chicago Mercantile Exchange (CME) is inaccurate because it is “thinly traded and has very few buyers and sellers.” The industry, it says, must develop “a more transparent pricing system that pays producers for what they produce and takes into consideration the cost of producing it.”

In encouraging a growth model rather than a supply management policy for the industry, PDMP calls growth is “a key business concept for our dairy producers and industry infrastructure because a business that is not growing tends to be moving backwards.“ The strength of the free enterprise system is also behind the belief that funds would be would be better used to help provide long term solutions and plans that help our industry compete on the world marketplace, rather than continuing direct payments to farmers.

It is the intention of the PDMP to continue to solidify these concepts through bi-weekly conference calls over the coming months. Comments and questions are welcomed at info@pdmp.org.

PDMP is a professional dairy producer organization of over 100 dairy businesses representing over 50,000 cows and nearly 20% of the milk produced in Pennsylvania. It is producer run and led and is supported by allied industry. Its mission is to advance the dairy industry in Pennsylvania through improved productivity and profitability. For more information on PDMP, visit their website at www.pdmp.org or email info@pdmp.org.