S4E31: “FMMO Hearing, The Good, The Bad, and The Snark” | Anja Raudabaugh

S4E31: “FMMO Hearing, The Good, The Bad, and The Snark” | Anja Raudabaugh The Skim: In this episode of the "Seen and Herd" podcast, Allison Tristao interviews Anja Raudabaugh, the CEO of Western United Dairies. They discuss various topics related to the Federal Milk Marketing Order (FMMO) hearing and its implications for the dairy industry. Here are some of the main topics discussed: 1. **Purpose of the Federal Milk Marketing Order (FMMO)**: Anja explains the purpose of the FMMO, which is to ensure an adequate national supply of fresh and wholesome milk for fluid consumption. The FMMO also aims to provide dairy farmers with stable and reliable markets to sell their milk. 2. **Components of FMMO**: Anja provides an overview of the components of the FMMO, including pooling, minimum pricing, accuracy, transparency, and the relationship between dairy processors (handlers) and dairy farmers (producers). 3. **Overview of Federal Orders**: The discussion touches on the fact that there are 11 federal orders across the United States, with certain regions being covered and regulated by FMMOs. The coverage of milk production by FMMOs has decreased over the years. 4.  **Proposals and Changes to FMMO**: Several proposals for amending or updating the FMMO are discussed. Different organizations, such as the International Dairy Foods Association (IDFA), the National Milk Producers Federation (NMPF), National All-Jerseys, American Farm Bureau Federation, and others, have submitted proposals addressing various aspects of the FMMO. 5. **Proposed Changes to Pricing Components**: Anja outlines proposals related to changing pricing components, such as class three and four skim milk price formulas, component factors, class differentials, surveyed commodity products, and more. 6.**Make Allowance and Manufacturing Cost Allowance**: The discussion focuses on the concept of make allowance, which is the amount deducted from a dairy farmer's milk check to cover processing costs. The proposals include suggestions for increasing the make allowance and how it might impact farmers. 7. **Organic Dairy Sector and Proposals**: Anja briefly mentions a proposal from the Organic Trade Associations (OTA) to exclude the organic dairy sector from FMMO regulations but notes that this proposal was not accepted by the USDA. 8. **Timeline and Testimony Opportunities**: Anja provides information about the timeline for submitting exhibits and proposals, as well as opportunities for dairy farmers to testify during the FMMO hearing. Virtual testimony slots are offered for farmers to present their viewpoints. Western United Dairies is offering help to assist members interested in their testimonies. 9. **Potential Impact on California**: Allison asks about the potential impacts these changes will have on California. Anja shares how proposed changes might impact California's dairy industry, particularly due to the state's limited class one utilization, as most of California’s milk production is primarily utilized for cheese products and other classifications. 10. **Challenges and Contention**: Anja acknowledges that FMMO hearings often involve passionate and contentious testimonies from both farmers and processors, highlighting the challenges of finding common ground. 11. **Conclusion and Next Steps**: Anja and Allison conclude by encouraging farmers to stay informed, participate in the hearing process, and anticipate the potential effects of proposed changes on their operations. Visit the Western United Dairies’ Website and Social Media Platforms: Website - https://westernuniteddairies.com >> For questions about this episode, please contact Anja at [email protected] or Allison at [email protected]  >> To learn more about Western United Dairies, visit wudairies.com. >> Click Here to become a member!