News Releases and other News Material/Number 01194/0024

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Release No. 0024.94
Becky Unkenholz (202) 720-8998
Ron Hall (202) 720-3310

USDA SETS HEARING ON PROPOSED AMENDMENTS TO FIVE MILK ORDERS

WASHINGTON, Jan. 7 -- The U.S. Department of Agriculture is inviting dairy farmers, cooperative associations, milk handlers and consumers to testify at a hearing on proposals to amend five milk marketing orders. The orders affected are the Chicago Regional, Nebraska-Western Iowa, Upper Midwest, Eastern South Dakota and Iowa.

The hearing will begin Jan. 25, 1994, at 9 a.m. at the Sheraton Inn Airport, 2500 East 79th St., Minneapolis, Minn.

Lon Hatamiya, administrator of USDA's Agricultural Marketing Service, said several associations representing dairy farmers requested the hearing to consider versions of a multiple component pricing plan.

The multiple component pricing plans, proposed for all five marketing orders, would result in milk being priced on the basis of its protein and non-protein nonfat solids, as well as its butterfat content and volume. Some of the proposals would include adjustments to prices paid to producers on the basis of somatic cell content, or some other quality factor, of the milk.

Hatamiya said the proposals are similar to multiple component pricing plans now in effect or recommended for other milk marketing orders.

Proponents of multiple component pricing believe milk order prices should more closely reflect the value of milk components sold to processors.

The hearing notice was published in the Jan. 4 Federal Register. Copies are available from H. Paul Kyburz, Market Administrator, 4570 W. 77th St., Suite 210, Minneapolis, Minn. 55435-5037; Myron R. McKinley, Market Administrator, Building A, Suite 200, 800 Roosevelt Road, Glen Ellyn, Ill. 60137; James H Williamson, Market Administrator, 14827 West 95 St., Lenexa, Kan. 66215-5220; or USDA/AMS/Dairy Division, Order Formulation Branch, Rm 2971-S, P.O. Box 96456, Washington, D.C. 20090-6456, telephone (202) 720-7183.

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