FOR IMMEDIATE RELEASE
February 24, 2003
Contact:  Erin K. Kelly
(717) 846-2828
ekelly@pasen.gov
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Senator Waugh to Hold Public Hearing on Milk Marketing Board's "Pooling" Regulation

HARRISBURG – State Sen. Mike Waugh (R-28) has scheduled a public hearing on March 19, in State College, to receive testimony from parties affected by the Pennsylvania Milk Marketing Board’s (MMB) proposed “pooling” of the over-order premium paid to dairy farmers on drinking milk that is produced, processed and sold in Pennsylvania.

Waugh, chair of the Senate Agriculture and Rural Affairs Committee, said that the proposed regulation, which will affect how the state-mandated premium on milk is paid to farmers, was submitted on February 14, 2003, to both Senate and House Committees. The Committees must now review the proposal, which may include voting to approve or disapprove the regulation.

“The issue of pooling has proven contentious and has divided the dairy industry. It is important that we gain a deeper understanding of how the MMB’s proposal will affect the entire dairy industry before we act on the regulation,” Waugh said. “Additionally, I have invited the House Agriculture and Rural Affairs Committee members, since the regulation is before them as well.”

The Pennsylvania Milk Marketing Board voted to change the way the premium is distributed in February 2002. The proposed rule would “pool” 45 percent of the premium among all Pennsylvania dairy farmers on all milk, including processed milk (cheese, butter and ice cream). The remaining 55 percent would be dispersed by individual dealer pools, as is the current practice.

“The amount of money distributed through the premium is substantial, almost $280 million since its inception in 1988, so it is important that the Committees hear all concerns and opinions to allow us to make an educated decision,” Sen. Waugh said.