FOR IMMEDIATE RELEASE
March 21, 2003
Contact:  Erin K. Kelly
(717) 846-2828
ekelly@pasen.gov
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Senate Agriculture Committee Holds Hearing on Milk Marketing Board's "Pooling" Regulation

Tremendous Support Shown – 22 Legislators Attend

HARRISBURG – The Senate Agriculture and Rural Affairs Committee, chaired by State Sen. Mike Waugh (R-York), held a hearing on March 19, in State College, to receive testimony from parties affected by the Pennsylvania Milk Marketing Board’s (MMB) proposed “pooling” of the over-order premium paid to dairy farmers on drinking milk that is produced, processed and sold in Pennsylvania.

Waugh said that the proposed regulation, which would affect how the state-mandated premium on milk is paid to farmers, was submitted on February 14, 2003, to both the Senate and House Committees.

“The issue of pooling has proven contentious and has divided the dairy industry. It was important that we gain a deeper understanding of how the MMB’s proposal will affect the entire dairy industry before we act on the regulation,” Waugh said. “I trust the information provided will be helpful to everyone as work continues towards the best solution.”

Members of both the House and Senate Agriculture and Rural Affairs Committees illustrated the importance of this issue through their attendance. In all, 22 Senators and Representatives traveled to State College to hear concerns and opinions regarding the proposed regulation and posed a number of thought-provoking questions.

“This is a complex issue, so I was impressed with the evident interest shown through both the members’ attendance and the questions asked during the hearing,” said Waugh. “The amount of money distributed through the premium is substantial, over $280 million since its inception in 1988, so this hearing was a key step in the process as we all attempt to make an educated decision.”

The Pennsylvania Milk Marketing Board voted to change the way the premium is distributed in February 2002. The proposed rule would “pool” 45 percent of the premium among all Pennsylvania dairy farmers on all milk, including processed milk (cheese, butter and ice cream). The remaining 55 percent would be dispersed by individual dealer pools, as is the current practice.