URGENT UPDATE: Major changes to federal milk pricing are igniting hope among New York dairy farmers. New federal milk marketing order (FMMO) adjustments, recently announced, aim to stabilize milk prices and improve profitability for farmers like Natasha Sutherland, co-owner of Stein Farms in LeRoy, New York.
“This is a significant moment for us,” Sutherland stated, reflecting her optimism about the future of dairy farming. The FMMO sets minimum milk prices based on usage, benefiting farmers by ensuring a more equitable pricing structure. For years, Sutherland faced dire financial challenges, with production costs often exceeding milk prices. “In 2009, milk prices hit $14 per 100 pounds, while it cost me $21 to produce it,” she explained.
Now, the FMMO’s revisions, the first substantial changes since 2008, have raised prices for higher-demand products like beverages and yogurt. “This will help create a more viable long-term supply chain by aligning prices with realistic production costs,” explained Chris Wolf, a professor of agricultural economics at Cornell University.
The dairy sector is poised for significant growth, with nearly $3 billion in new investments flowing into processing facilities from major companies such as Chobani, Fairlife, and Great Lakes Cheese. “Dairy is critical to New York’s economy, generating two-thirds of farm revenues,” Wolf added, highlighting the integral role of dairy in the state’s agricultural landscape.
Sutherland recently received her first check under the new pricing system, showing a modest loss of $0.04 for approximately 12 gallons produced. “It could have been far worse if the processors had their way. We would have faced losses of $0.15 to $0.20,” she said, emphasizing the potential dangers of inadequate pricing structures.
Despite these challenges, Sutherland remains hopeful. “It’s not a today fix. It’s a 15-year, 20-year fix,” she stated. The changing landscape offers a promising outlook for dairy farmers, with increasing consumer demand for protein-rich products. “Protein is king right now. American consumers cannot get enough protein in their diets,” she noted, reinforcing the growing importance of dairy products.
As New York dairy farmers adapt to these recent changes, the future looks bright. With ongoing partnerships and investments, the state’s dairy industry is expected to flourish, providing essential products for consumers and bolstering the local economy.
Stay tuned for more updates as this story develops, and watch how these changes impact farmers across the region.
