Adapt FMMO System to Encourage Investments, Dykes Tells Program Leaders

Michael Dykes, D.V.M., IDFA president and CEO, today asked Federal Milk Marketing Order (FMMO) market administrators to adapt the federal orders to be more flexible and dynamic to encourage greater investment in higher-value dairy products.

“Making sure our current systems get the market signals right is critical to preserving our industry’s competitiveness in key export markets,” Dykes said.

In a presentation delivered during the Agricultural Marketing Service’s biennial FMMO meeting today in Breckenridge, Colorado, Dykes advocated that initial reform efforts be focused on the following three priority areas:

  • Adjusting the program’s make allowances to incentivize the industry to make decisions and allocate milk to maximize return to U.S. producers and manufacturers;
  • Improving price discovery mechanisms to facilitate better market signals across the supply chain; and
  • Addressing the fluid market situation.

Jim Mulhern, president and CEO of the National Milk Producers Federation, also participated in today’s meeting. This is the first time in nearly a decade that IDFA and NMPF representatives have been asked to present to this gathering of key leaders of the FMMO program.