Washington D.C. (July 14, 2009) – The National Family Farm Coalition held a public flyering and press teleconference today to highlight the failure of the House Agriculture Subcommittee’s hearing on the dairy crisis to spotlight the voices of real family dairy farmers instead of relying on the same corporate processors and giant dairy cooperatives.

Paul Rozwadowski, NFFC Dairy Subcommittee chairman and a Wisconsin dairy farmer, said, “While today’s hearing did a good job describing the disastrous conditions we are living under with the dairy price collapse, the Committee chose to have as witnesses the same dairy processors and very large factory farm operations who continue to push their same failed approaches. Instead of spotlighting our broken dairy pricing system, witnesses chose to focus on Dairy Export Incentive payments, Cooperatives Working Together’s “cow retirement” program, and more government purchasing of dairy products, none of which has made a dent in the crisis.”

Hilde Steffey of Farm Aid spoke about the letter sent to the House Agriculture Committee today signed by 57 consumer, public health, environment and farm groups urging Secretary Vilsack to institute an $18 emergency floor price to help stem the economic collapse of the rural economies. Previously, Farm Aid had met with Secretary Vilsack to deliver 13,000 signatures from a petition requesting a higher floor price. Steffey said, “At Farm Aid, we've been hearing from struggling dairy farmers on a daily basis. The total number of dairy calls to our hotline has increased nearly 500% since this time last year. We fully recognize that setting an emergency floor price for farm milk will not address the root problems in dairy. We need investigation into price gouging and a complete overhaul of pricing. We need import regulation. But taking this emergency step may be the only way to prevent the loss of thousands of dairy farmers by year’s end. The situation is dire and urgent and demands strong action now.”

Gerald Carlin, a Pennsylvania dairy farmer, said the hearing represented simply business as usual with witnesses ignoring the most important reason behind the dairy crisis: a flawed pricing system easily manipulated by corporate interests. He said, “These presumed experts are called to testify on solutions when they themselves are the problem. National Milk Producers Federation is calling for a $10.50 support price when the floor price in 1980 was $13! No one wants to admit the current pricing system is broken as we receive the same price for our milk as 30 years ago! It is time to change the system.” Unlike the witnesses who testified today, Carlin said a supply management program was necessary to keep farmers in business and touted a bill introduced by Senators Bob Casey and Arlen Specter earlier this year that would establish a national average cost of production. Carlin said, “The only supply management we have now are low prices that drive farmers out of business. This just hurts all our rural communities and puts at risk our domestic food supply. S. 889 would have a supply management that maintains supply in line with demand and give farmers a fair price.”

Joel Greeno, a Wisconsin dairy farmer, called the witnesses at the hearing “wolves in sheep’s clothing” that family farmers needed to be wary of. Greeno cited the Department of Justice’s two-year antitrust investigation into Dean Foods and Dairy Farmers of America that was never made public and the December 2008 $12 million fine of Dairy Farmers of America for price manipulation at the Chicago Mercantile Exchange. Greeno said, “The wolves get to testify, farmers are left to fend for themselves. All we want is justice. How much corruption can we allow to go on with no consequences?”

The collapse in dairy prices has not been a benefit to consumers. Patrick Woodall of Food and Water Watch said, “There is a giant gap between the prices consumers are seeing at the grocery store versus the collapse of prices at the farm. It is mostly captured by food processors in the middle. We see Dean Food’s profits increase by 150% over their 1st quarter from last year and 10% for Kraft Foods.” Woodall further noted that with thousands of farmers going bankrupt, America’s food supply is further jeopardized: “Consumers want more local, sustainable options. What happens is when big processors squeeze farmers out, consumer lose out on local options.”