Dairy Policy Action Coalition
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  July 19, 2010

Dairy farmers in fight over fee

They hope to stop some milk processors from keeping money meant for them

By Darrin Youker, Reading Eagle

For each gallon of milk bought in Pennsylvania supermarkets and grocery stores, 25 cents is set aside with the intent to help state dairy farmers.

But, in some cases, that money never gets to the farm.

Under a complex pricing system designed to give Pennsylvania farmers a bit more money, shoppers who buy milk that is produced, bottled and sold in Pennsylvania pay what is known as an “over-order” premium.

But agricultural experts say that Pennsylvania farmers are not getting that premium when milk companies briefly ship the milk out of state for storage.

Even though consumers continue to pay the additional charge, those payments, totaling about $16 million annually are the amount that can become “stranded” and remain with milk processors.

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