WASHINGTON, July 8, 2003 - The National Family Farm Coalition (NFFC) denounces the National Milk Producer Federation's (NMPF) quick-fix approach, its Cooperatives Working Together (CWT) Program, to the dairy industry crisis.

"If the National Milk Producers Federation is so concerned with the dairy industry crisis, why doesn't it limit the amount it imports instead of making America's dairy farmers suffer," questioned John Bunting, a New York dairy farmer who milks 40 cows. "Obviously, if domestic production is reduced, imports will increase by those who claim to represent the interest of dairy farmers."

Two NMPF members, Dairy Farmers of America (DFA) and Land O Lakes (LOL), together hold 23 import permits-DFA with 11, LOL with 12.

Today, the largest milk cooperatives in the U.S. abuse the power to collectively bargain on behalf of dairy farmer members in order to obtain just and equitable milk pricing. In fact, many milk cooperatives and dairy processors work collaboratively to keep farm milk prices low, reducing corporate costs through price manipulation at the Chicago Mercantile Exchange (CME).

"It's interesting how just after the NMPF vote the price of block cheese rose to $1.50 on the CME," said Bunting. "Coincidence-unlikely!"

NFFC wrote domestic dairy policy, available in its Food From Family Farms Act, that includes: a cost of production formula, fair farm-gate price funded by the market place, market place stabilization mechanisms, and dairy import tariffs to align market price with farmers' cost of production.

"Dairy farmers working together with the NFFC want to see these changes in U.S. farm policy," said NFFC Dairy Subcommittee Chair Paul Rozwadowski. "What is happening in the dairy industry is something the U.S. Department of Agriculture has to deal with-instead, Sec. Veneman is leaving it to dairy cooperatives that have never protected America's dairy farmers' interests. The only thing cooperatives worry about is profits, and that's all the CWT program is concerned with, too."

NFFC urges the USDA to act in the interest of both America's dairy farmers and the general public by supporting U.S. dairy policy that works.

"If this Administration further ignores the state of the dairy industry and supports processors and cooperatives that risk taking matters into its own hands," said Pennsylvania dairy farmer Donna Hall, "regional milk market infrastructures will collapse and America's consumers will suffer faster than anyone suspects."