February 19, 2009

Leading US dairy cooperative Dairy Farmers of America (DFA) are taking several measures to help their members tide through the current low price cycle.

The co-op has expected to manage through volatility but this down cycle is especially serious, DFA chairman Tom Camerlo said.

Camerlo said milk prices are dangerously low at a time when on-farm costs are at a historically high level amid the global economic crisis.

As a result, the DFA has drawn up several initiatives to help ease the burden on members.

As part of the measures, DFA will continue to support the Cooperatives Working Together (CWT) programme, a dairy farmer-funded self-help initiatives designed to strengthen and stabilise milk prices by balancing supply with demand.

DFA will also establish a hotline as a 24-hour support system to offer assistance to members, and provide member access to the Member Assistance Programme which offers financial and legal advice and resources help.

DFA will try to secure the best price for members through maximising premiums and working closely with suppliers and customers to optimise efficiencies in the supply chain. The co-op will continue the development of new products and technology, strives to expand government programmes that will benefit dairy producers and continue to advocate for fair trade policy.

DFA will also offer several programmes and services to help members manage their on-farm costs and price volatility risk.