Contacts:
Kelly Loftus, Agency of Agriculture, (802) 828-3829

Wednesday, July 22, 2009

Montpelier, Vt – An unprecedented downturn in prices paid to dairy farmers for milk, coupled with increased production costs has created a crisis situation for farmers in Vermont and across the nation. Due to an archaic pricing situation and interstate commerce laws, one state acting alone can do little to alleviate the situation. Governor Douglas, Secretary Allbee and the Vermont’s Congressional Delegation have all stepped up to work with their counterparts in other states to effect meaningful change for our dairy farmers.

“One state has little leverage to put in place the extensive changes needed to stabilize the milk pricing system. I want to thank Vermont’s Congressional Delegation for recognizing the dire situation our dairy industry is facing and working to explore short and long term solutions,” said Roger Allbee, Vermont Agriculture Secretary. “The letters signed by Senators Leahy and Sanders and the testimony Congressman Welch provided to the House Agriculture Committee is keeping the focus on the dairy crisis bringing the parties together who can make the changes we need.”

Allbee also said he fully supports Senator Sanders calling for an investigation by the Justice Department of a possible monopoly by Dean Foods who control 40 percent of fluid milk nationwide and 70 percent of fluid milk in New England.

Secretary Allbee was invited to give written testimony for an open record by Congressman Welch which he hand delivered to the House Agriculture Subcommittee for Livestock, Dairy and Poultry today. In his testimony, Allbee stated “Thank you for accepting written testimony on the situation of the dairy industry in the nation. As Secretary of Agriculture for Vermont, I am deeply concerned for our state’s dairy farm families and the rural communities and economies of our state.” And went on to describe the plight of dairy farmers, how the crisis is impacting our rural communities, economy and associated agriculture businesses.

Recently, Governor Douglas joined his counterparts in the Northeast to encourage USDA Secretary Vilsack to increase the MILC payment and to help ailing dairy farmers through loan extension and forgiveness. Secretary Allbee has also coordinated the efforts of Northeast agriculture commissioners to move dairy surplus product to food and nutrition programs and to increase price supports.

“We all want to help and we all recognize the importance of a viable dairy industry for our economy, working landscape and food safety. This crisis has to be the catalyst to put changes in place to protect dairy farmers from these volatile price swings. We will leave no stone unturned searching for short and long term solutions to protect the dairy industry in the Northeast and across our nation, said Allbee.

Northeast Commissioners Letter to Secretary Vilsack (July 22, 2009)
Secretary Allbee’s Testimony to The House Subcommittee on Livestock, Dairy and Poultry (July 17, 2009)