NDA and DFA Commit to Improve Milk Market Stability in the Northwest

June 1, 2007

Kansas City, MO and Seattle, WA - In an effort to improve marketing conditions for dairy farmers in the greater Pacific Northwest region, Northwest Dairy Association (NDA) and Dairy Farmers of America, Inc. (DFA) have agreed to work together on certain milk marketing efforts.

The parties have agreed to coordinate marketing efforts in defined regions to bring greater returns to dairy farmers. To achieve this goal, NDA and DFA are proposing an expansion of the Pacific Northwest (PNW) Federal Milk Marketing Order to include the states of Idaho and Utah. They also are developing marketing agencies in common (MACs) in Idaho/Utah and Washington.

“This will allow both cooperatives to better facilitate the efficient marketing and delivery of milk in the region,” said Les Hardesty, chairman of DFA’s Mountain Area Council. “An expanded PNW Federal Order and MACs should provide more milk price stability across the region, while providing an opportunity to improve margins for producers.”

Rod DeJong, chairman of the NDA Board of Directors, agreed. “The expanded PNW Federal Order and new MACs will allow cooperatives that service the Class I markets across the region to better meet the needs of both dairy producers and processors,” he said.

Under the Federal Order expansion proposal, milk sales to fluid milk processors with significant sales in Idaho, Utah, and Western Wyoming would become regulated under an expanded Pacific Northwest Federal Milk Marketing Order. The proposal keeps most of the pooling provisions currently in the Pacific Northwest Federal Order, however with the proposed modifications, the expanded PNW Order will contain the most restrictive de-pooling provisions currently in any Federal Order.

John Underwood, CEO of NDA notes that, “the combination of an expanded PNW Federal Order and marketing agencies in common offer great opportunities for increased stability in the market.” DFA Mountain Area Council Chief Operating Officer Greg Yando agrees. “The MAC will provide several benefits to its members and their customers, including increased hauling efficiency, improved market balancing, and mutually beneficial service charge programs,” said Yando.

Northwest Dairy Association (NDA) is the nation’s fourth-largest dairy cooperative and was founded in 1918. NDA is integrated milk marketing and processing cooperative based in Seattle, Washington, owned by approximately 625 dairy producers. NDA’s members market approximately 7.5 billion pounds of milk annually from farms in Washington, Oregon, Idaho, Northern California, and Utah.

Dairy Farmers of America, Inc. (DFA) is an integrated milk marketing and processing dairy cooperative based in Kansas City, Missouri. DFA is the nation’s leading dairy cooperative with nearly 20,000 members in 49 states marketing approximately 67 billion pounds of milk annually. In addition to stable milk markets, DFA provides its members with a variety of value-added programs and services.