The National Milk Producers Federation today expressed its “serious reservations” about the impact of a renewal in Canadian dairy animal exports to the
The U.S. Department of Agriculture announced Friday that it will reopen the
“The USDA has dismissed as ‘negligible’ the economic impact of this decision, but dairy farmers are very concerned about what this will do to their milk prices,” said Jerry Kozak, President and CEO of NMPF. “Our analysis shows that a return to export levels of 2003 will reduce milk prices by 18 percent over the next five years, cutting dairy farmer income by $5 billion.”
Those figures were shared earlier with both the USDA and the Office of Management and Budget, which has the responsibility to assess the impact of major changes in federal regulations.
NMPF estimates that additional annual imports of between 47,000 and 60,000 Canadian dairy heifers could increase milk production by 0.5 percent per year over the next five years, which “is a large enough quantity to generate significant damage in the milk checks of dairy farmers,” Kozak said.
In addition to a reduction in milk prices, a surge in Canadian dairy animals will reduce the current value of a farmer’s dairy herd, “substantially reducing” his net worth, Kozak said.
NMPF is also concerned that while
“Our dairy farmers can’t take any comfort from USDA’s probabilities and statistical projections. The reality is that animals infected with BSE in
“The existence of BSE-infected animals could substantially undercut demand for beef, as it has done in
NMPF staff met earlier this month with officials from the OMB, asking for an opportunity to further assist the OMB with a full review of the potential impact of this proposed regulation.
Kozak said that NMPF has “laid a clear and coherent foundation for any future action that may be necessary to protect the integrity of our national dairy herd. We are examining what additional recourse we may have in this matter.”