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2

California Dairy Review

Hundredweight Prices

Class

May.

Jun.

Jul.

1

No. Calif.

$16.65

$16.99

$18.45

So. Calif.

$16.92

$17.26

$18.72

2

No. Calif.

$15.11

$14.51

$14.51

So. Calif.

$15.34

$14.74

$14.74

3

$15.06

$14.46

$14.46

4a

$14.43

$15.91

N/A

4b

$15.25

$15.60

N/A

Pool Price

Mar.

Apr.

May.

Quota

$15.84

$15.72

$16.46

Overbase

$14.14

$14.02

$14.76

Quota Transfers

May.

Jun.

Jul.

Number of Sellers

3

5

2

Pounds of SNF Quota

Transferred

865 4,555 353

Average Price Per

Pound of SNF Quota $547 $540 $545

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 Million Pounds

2015

2016

2017

Average Daily Basis, 2015 - 2017

California Milk Production

Hundredweight Prices

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.