Increased competition from California and outdated federal milk marketing rules played a role in Foremost Farms posting a loss in 2006. The Baraboo, Wis., based cooperative ended the year with a $12.5 million loss.

According to an article in the Baraboo News Republic, the cooperative, which is owned by about 3,000 farmers, has no plans to cut jobs.  This was the co-op’s first ever operating loss.

Co-op officials say changes in the marketing rules have helped correct some of the problem. In addition they are looking at where they can cut costs and at changing their product mix to include more profitable products.

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