Crisis unites California co-ops

Continuing financial crisis has resulted in perhaps an unprecedented level of unity between dairy cooperatives in California.

On July 16, members of the state's four largest co-ops signed documents creating the Western Milk Cooperatives Agency (WMCA). The new organization is a marketing agency in common (MAC) consisting of California Dairies, Inc., Dairy Farmers of America Western Council, Land O’Lakes, Inc., and Security Milk Producers Association. Of the 41 billion pounds of milk produced in California last year, about 33 billion pounds were marketed by all co-ops in the state. The four WMCA members accounted for approximately 31 billion pounds.

Signing the MAC agreement in the accompanying photo were (l-r): Fred Douma, representing SMPA; Tony Mendes, representing CDI; George Mertens, representing DFA; and Cornell Kasbergen, representing LOL.

WMCA spokesman Eric Erba, vice president of government relations for CDI, explains that a MAC is simply a group of milk marketing co-ops that work together in a variety of ways to help market products under a common agreement. He says WMCA’s objective is to identify ways that its members can work together, move milk more efficiently and cost-effectively, and match market supply of dairy products more closely to market demand.

“The first thing we’re going to be looking at is to identify ways to reduce hauling costs for everyone,” Erba adds. “We’re already setting up a meeting with all the transportation and dispatch people at the four co-ops to discuss how we can send one co-op’s milk to another co-op’s customer if it means a shorter haul.”