During
their annual business meeting, Edge members had the opportunity to hear a
presentation from ag economist Dr. Marin Bozic about his research on Federal
Milk Marketing Orders (FMMOs) reform.
Among the topics Dr. Bozic mentioned, two commonalities stood out:
increased flexibility and a need for transparency.
Dr.
Bozic pointed to other milk marketing regulations across the globe that might
serve as templates for the United States to model potential reforms after,
including Australia and Ireland. In these markets, marketing agreements and
price are much more transparent, allowing milk producers to know how fairly
their handler is paying them. Australia also allows handlers to either install
volume limits or exclusivity — but not both. A processor must either allow a
producer to create as much milk as they want and be exclusive or allow them to
pursue other marketing agreements for excess milk if a volume limit is in
place.
While
FMMO reform remains a hot topic in dairy, experts like Dr. Bozic and others say
they will remain engaged in finding the right solution for dairy farmers. Dr.
Bozic serves in an advisory role on the Edge board of directors.