Washington D.C. (July 31, 2009) – The National Family Farm Coalition today warned Secretary Tom Vilsack that USDA’s plans to temporarily raise cheese and nonfat dry milk prices through the Dairy Product Price Support Program (DPPSP) still falls far short of a real remedy to stop the imminent bankruptcies of dairy farmers across the country. The increase in dairy support price is likely to only produce a Class III price under $12 when costs of production for dairy farmers ranges from $17-30. Paul Rozwadowski, a Wisconsin dairy farmer and Chairman of the NFFC Dairy Subcommittee, said, “While we are heartened that Secretary Vilsack acknowledges the grave crisis dairy farmers are confronting, raising dairy support prices by these small amounts is unlikely to stop the economic devastation occurring in rural America. We need at least an $18 emergency floor price on all manufactured milk to be able to stay in business and survive. This would be a much less costly solution than USDA simply buying up more products.”

Vilsack has yet to also address a key factor depressing farm milk prices—the flood of cheap imported milk protein concentrates (MPCs) that food manufacturers are using to displace U.S. farmers’ milk. MPCs are allowed to flood our markets due to an unfair trade loophole. Formerly used for industrial glue purposes, MPCs have never been certified as “Generally Regarded as Safe” by the FDA for use in food products. MPC imports have reached record highs in 2009, even as many insist we have an oversupply of milk. Donna Hall, a Pennsylvania dairy farmer, said, “Processors are using imported MPCs in their cheese and other products, deceiving consumers accustomed to our high-quality real milk products. How can our milk prices be so low due to supposed overproduction when MPCs keep on coming in with no end? Secretary Vilsack and USDA must address this issue if we are to save our domestic dairy industry.”