U of I to host meeting of dairy economists

University of Idaho news release

The University of Idaho will host the annual meeting of a national group of dairy economists Sept. 23-24 in Twin Falls. 

The National Workshop for Dairy Economists and Policy Analysts, organized by the National Program on Dairy Markets and Policy, rotates among dairy-producing regions of the United States each year and will be held in Idaho for the first time.

The workshop will take place in the Herrett Center on the College of Southern Idaho campus in the Magic Valley, Idaho’s leading dairy production region. In addition to attending sessions focused on key issues in dairy economics and policy, participants will tour U of I’s Idaho Center for Agriculture, Food and the Environment (Idaho CAFE) in Rupert, which will include the nation’s largest research dairy, or the Chobani yogurt plant in Twin Falls.

Hernan Tejeda, an associate professor with U of I’s College of Agricultural and Life Sciences and an Extension specialist in dairy and livestock economics, serves on the event’s organizing committee.

Tejeda expects about 60 economists and policy analysts representing universities, agencies such as the U.S. Department of Agriculture (USDA), financial institutions, milk processors, dairy cooperatives and other organizations to attend.

The workshop’s theme is “Living with regulation; living without regulation,” covering the recent revisions to Federal Milk Marketing Orders (FMMOs). Administered by USDA, FMMOs establish minimum prices dairy processors must pay for milk purchased from dairy farmers within their respective marketing regions.

Roughly two-thirds of U.S. milk is regulated under FMMOs, while dairy producers in some states, including Idaho and Utah, have opted to market milk through unregulated, non-FMMO systems instead.

During one of the sessions, Tejeda will present findings from a study comparing outcomes under the two systems.

“In general, neither one is more beneficial than the other,” Tejeda said. “There are times when it may be more beneficial to be in an order like this, and other times it may be more beneficial not to be in the order, so it’s basically a wash.”

Another major topic of discussion will be the changing market demand for milk components. While processors have been focused primarily on milkfat, recent growing demand for protein has shifted attention toward protein content. This also has implications for U.S. dairy exports as well as for risk management.