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California Dairy Review
Summary of Trailer Bill for Stand-Alone Quota Program
The Producer Review Board (PRB) is currently in the process of developing a detailed stand-alone quota
program, which, once accepted by the Secretary will then go out to the producer community for affirmation by
referendum. The rules and procedures for this process are all currently contained in the Food and Agriculture
Code.
The proposal that producers vote on will contain all the final regulatory language needed to implement the
program. If affirmed, enactment of the stand-alone quota program will be contingent upon the Federal Milk
Marketing Order being approved by dairy producers in California. The trailer bill introduced by the Department
simply ensures that this process is explicitly authorized. It states:
“Section 62757 is added to the Food and Agricultural Code, to read:
62757. (a) If a federal milk marketing order is established in California, the secretary is authorized to
establish a stand-alone quota program, the details of which shall be included in the pooling plan.
The stand-alone quota program may be funded by an assessment on milk produced in this state.
(b) The secretary may require handlers, including cooperative associations acting as handlers, to
make reports necessary for the operation of the stand-alone quota program.
(c) The stand-alone quota program shall be pursuant to a recommendation by the review board
established pursuant to Section 62719 and approved by a statewide referendum of producers
pursuant to Sections 62716 and 62717.”
It should be noted that the powers of the PRB are limited to those powers currently existing in the Food and
Agricultural Code. Any recommendations from the PRB that fall outside the bounds of the statute will need
legislative authority to effectuate.
Hundredweight Prices
Class
Apr.
May.
Jun.
1
No. Calif.
$16.76
$16.65
$16.99
So. Calif.
$17.04
$16.92
$17.26
2
No. Calif.
$15.11
$15.11
$14.51
So. Calif.
$15.34
$15.34
$14.74
3
$15.06
$15.06
$14.46
4a
$13.73
$14.43
N/A
4b
$14.30
$15.25
N/A
Pool Price
Feb.
Mar.
Apr.
Quota
$17.19
$15.84
$15.72
Overbase
$15.49
$14.14
$14.02
Quota Transfers
Apr.
May.
Jun.
Number of Sellers
8
3
5
Pounds of SNF Quota
Transferred
9,494 865 4,555
Average Price Per
Pound of SNF Quota $535 $547 $540
California Pool Prices
Quota Transfer Summary
California Minimum Class Prices
100
105
110
115
120
125
1
2
3
4
5
6
7
8
9
10
11
12
In MillionPounds
2015
2016
2017
Average Daily Basis, 2015 - 2017
California Milk Production
Hundredweight Prices