September 2017 Board Book

OTHER QUOTA ISSUES • Only milk subject to assessment is eligible to receive a quota payment; • Quota payments shall not exceed the snf quota shipped during the month; • A dairy must ship milk qualified for a quota payment at least once every 60 days, or the producer’s quota reverts back to CDFA to handle the quota as it does currently; • A cooperative member’s quota will be assigned to the cooperative and the cooperative will be treated as a single producer; • A producer may not purchase quota if the dairy has sold any quota within the last 24-month period; • A producer may not sell quota if the dairy has purchased any quota within the last 24-month period; • The PRB will continue to hear hardship cases as currently is the practice. NEXT STEPS Department staff will incorporate the motions into regulatory language and present it to the board at its next meeting scheduled for August 2, 2017 at the Modesto Centre Plaza (in conjunction with the Double Tree Hotel). It is anticipated that the board will review the regulatory language and make a formal recommendation to the Secretary regarding the regulatory language that establishes the stand-alone quota program.

Following the formal recommendation, the Secretary will review the language, and accept and/or amend the recommendation. The final language will then be put out to California dairy producers for a referendum vote.

STAND-ALONE QUOTA REFERENDUM PROCESS Eligible California producers will be mailed referendum ballots via US postal mail. Individual producers will cast their ballots and return them to the Department. The referendum process, by statutory requirement, will take 60 days. Once the votes are certified and tallied, the Department will announce the results of the referendum. The referendum process is expected to be concluded in the fall.

California Pool Prices

Quota Transfer Summary

Hundredweight Prices

Quota Transfers Number of Sellers Pounds of SNF Quota Transferred

May.

Jun.

Jul.

Pool Price

Mar.

Apr.

May.

3

5

2

Quota

$15.84 $14.14

$15.72 $14.02

$16.46 $14.76

865 4,555 353

Overbase

Average Price Per Pound of SNF Quota $547 $540 $545

Average Daily Basis, 2015 - 2017 California Milk Production

California Minimum Class Prices

125

Hundredweight Prices Class May.

120

Jun.

Jul.

1 No. Calif. So. Calif. 2 No. Calif. So. Calif.

$16.65 $16.92 $15.11 $15.34 $15.06 $14.43 $15.25

$16.99 $17.26 $14.51 $14.74 $14.46 $15.91 $15.60

$18.45 $18.72 $14.51 $14.74 $14.46

115

110

3

In Million Pounds

4a 4b

N/A N/A

105

100

1

2

3

4

5

6

7

8

9

10

11

12

2015

2016

2017

2

California Dairy Review