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Report to Congress - July 1, 2004 Report to Congress - July 1, 2003 Report to Congress - July 1, 2002 For more information, contact the Promotion and Research Branch, Dairy Programs, Agricultural Marketing Service, U.S. Department of Agriculture, Room 2958-South Building, Stop Code 0233, 1400 Independence Avenue, S.W., Washington, D.C. 20250-0233. Telephone: (202) 720-6909. FAX: (202) 720-0285. Internet: david.jamison2@usda.gov.
The Dairy Production Stabilization Act of 1983 (Dairy Act) authorized a national producer program for dairy product promotion, research, and nutrition education to increase human consumption of milk and dairy products and reduce milk surpluses. This self-help program is funded by a mandatory 15-cent-per-hundredweight assessment on all milk produced in the contiguous 48 States and marketed commercially by dairy farmers. It is administered by the National Dairy Promotion and Research Board (Dairy Board). The Dairy Act provides that dairy farmers can direct up to 10 cents per hundredweight of the assessment for contributions to qualified regional, State, or local dairy product promotion, research, or nutrition education programs. These are referred to as Qualified Programs. The Secretary of Agriculture has delegated to the Promotion and Research Staff the responsibility of overseeing the activities of the national dairy promotion and research program and reviewing the program's budgets and expenditures on a continuous basis. In addition, staff attends all Dairy Board and committee meetings; solicits nominations to the Dairy Board for appointment by the Secretary, and seats new Dairy Board members; reviews and approves all advertising and promotion messages and materials for conformance to the Dairy Act, Order, and USDA policy; and assures that the Dairy Act and Order provisions are met. The Dairy Board reimburses the Secretary, as required by the Dairy Act, for USDA's administrative costs of program oversight. USDA is required to submit an annual report on the producer and processor Dairy Promotion Programs to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition and Forestry by July 1 of each year. The Dairy Promotion and Research Order (Dairy Order) implementing the program was issued March 23, 1984. Assessment collection began on milk marketed during May 1984. The first Dairy Board was seated on May 30, 1984. The Dairy Act required the Secretary of Agriculture to conduct a referendum among dairy farmers by September 30, 1985, to determine if a majority favored continuation of the program. Of the dairy farmers who voted in the August 1985 referendum, nearly 90 percent approved continuation of the program. A second referendum to continue the dairy promotion program was held in August 1993. Approximately 71 percent of the dairy farmers who voted in the referendum favored continuation of the program. Future referenda, as defined in the Dairy Act and Order, will be held upon the request of at least 10 percent of the affected producers or when called by the Secretary of Agriculture. In March 1994, the Dairy Board approved the creation of Dairy Management, Inc. (DMI). This is a joint undertaking with the United Dairy Industry Association (UDIA). UDIA is a federation of State and regional generic producer promotion organizations. DMI's purpose is to provide better coordination of producer promotion funds by having a joint plan, joint budget, and joint execution. Dairy Board Composition:
The Fluid Milk Promotion Act of 1990 (Fluid Milk Act) authorizes this program. It
provides the authority for fluid milk processors to develop and finance generic
advertising programs designed to maintain and expand markets and uses for fluid milk
products produced in the United States. The Fluid Milk Order (Fluid Milk Order) became
effective December 10, 1993. The National Fluid Milk Processor Promotion Board (Fluid Milk
Board) is responsible for administering the Fluid Order. The Secretary of Agriculture has delegated to the Promotion and Research Staff the
responsibility of overseeing the activities of the fluid milk promotion program and
reviewing the program's budgets and expenditures on a continuous basis. In addition, staff
attends all Fluid Board and committee meetings; solicits nominations to the Fluid Board
for appointment by the Secretary and seats new Fluid Board members; reviews and approves
all advertising and promotion messages and materials for conformance to the Fluid Act,
Order, and USDA policy; and assures that the Fluid Act and Order provisions are met. USDA is required to submit an annual report on the producer and processor Dairy
Promotion Programs to the House Committee on Agriculture and the Senate Committee on
Agriculture, Nutrition and Forestry by July 1 of each year. USDA held a referendum in October 1993 on the proposed Fluid Milk Order. The referendum
was approved by 71.7 percent of the fluid milk processors voting in the referendum that
represented 76.7 percent of all fluid milk products marketed during May 1993. The Order
became effective December 10, 1993. USDA held a continuation referendum in February-March
1996. Of the processors voting in that referendum, 64.9 percent favored continuation of
the program. These processors represented 70.8 percent of the volume of fluid milk
products marketed by all processors during September 1995, the representative period set
for the referendum. The Fluid Milk Act and Order state that USDA will hold future
referenda upon the request of the Fluid Milk Board, processors representing 10 percent or
more of the volume of fluid milk products marketed by those processors voting in the last
referendum, or when called by the Secretary. The Fluid Milk Act provides for the Fluid Milk
Board to collect assessments on all fluid milk products processed and marketed
commercially in consumer-type packages in the United States. The mandatory
national fluid milk program is financed by a 20-cent per hundredweight
assessment on all fluid milk processed and marketed commercially in
consumer-type packages in the contiguous 48 states and the District of
Columbia. Those who commercially process and market 3,000,000 pounds or less
per month, excluding those fluid milk products delivered to consumer residences,
are exempt from assessments. Fluid Milk Board annual revenue is approximately
$110 million. The Fluid Milk Board
is composed of 20 members who are appointed by the Secretary of Agriculture.
Of the 20 board members, 15 represent geographic regions and five are
at-large members. The five at-large members include at least three fluid
milk processors and at least one member from the general public. Fluid Board
members hold staggered three-year terms and are eligible for appointment to
two consecutive terms. The initial Fluid Board was seated July 27, 1994. Go To: Dairy Programs |
