(Washington, D.C.) –U.S.
Senator Patty Murray (D-WA) co-sponsored the Dairy Price Stabilization Act to
protect Washington state dairy farmers and strengthen the dairy industry by
stabilizing the price of milk. The Dairy
Price Stabilization Act would prevent market volatility and better align supply
and demand by incentivizing farmers to cut back on production when there is too
much milk on the market. It would allow farmers a set amount of continued
growth, as well as options for managing growth over the allowable growth rate,
while reducing wild price swings.
“Washington state is
the tenth largest dairy state in the country and our farmers, their families,
and local communities depend on the continued success of this critical
industry,” said Senator Patty
Murray. “This legislation creates
a structure to stabilize dairy prices and is a strong step toward helping local
farmers prosper and avoid the wild price swings that could cost them their
farms.”
“We appreciate Senator
Murray’s leadership on this issue,” said
Jay Gordon, Executive Director of the Washington State Dairy Federation. “The
price volatility we’ve experienced in the past few years has had unprecedented
effects on our farmers and our consumers.”
“We have to work
together to make the dairy industry viable,” said Larry Stap of Twin Brook Creamery in Lynden, Washington. “As
a dairy producer in growth mode, it’s important that we are looking at the
bigger picture, including supply management, for the health of the entire dairy
industry.”
The dairy industry is
susceptible to price booms and busts, and in 2009 the industry experienced one
the worst crises in recent history. With prices dropping well below the
cost of production, overproduction soared and prices continued to
decline. The dairy industry lost over $12 billion in 2009 alone,
resulting in layoffs and the closing of operations across Washington state.
The Dairy Price
Stabilization Act, S. 3531, was introduced on June 28th and has been
referred to the Senate Agriculture Committee.
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