Tag: Quota Implementation Plan

  • Referendum to Terminate Dairy Quota Implementation Plan Fails

    The California Department of Food and Agriculture (Department) recently conducted a referendum vote among California Market Milk Producers within the State of California to determine whether the Quota Implementation Plan (QIP) which became effective November 1, 2018, should be terminated effective immediately.

    On August 6, 2024, the Department received a petition titled “Petition to Terminate the QIP #5” by Stop QIP. The petition asked that the Secretary call a referendum to immediately terminate the QIP. The Department performed a review of the petition signatures and their respective reported volume and determined that the twenty-five percent (25%) thresholds had been achieved. The petition was then referred to the Producer Review Board (PRB) for consideration. At a Board meeting held on December 17, 2024, the PRB reviewed the petition and passed a motion recommending that the Secretary issue an industry referendum to vote on the petition. The Secretary reviewed the PRB’s recommendation and approved it.

    The referendum to consider termination started on June 12, 2025. On September 9, 2025, one day prior to the end of the voting period for the referendum, over 501 ballots were hand-delivered to the Department by a third party. Visual inspection upon receipt confirmed that the ballots had been removed from their sealed envelopes. Due to these unusual circumstances, the Department decided to reissue the ballots in question and grant a special extension to vote to the producers whose ballots were received open. The voting period for the special extension for the affected producers was October 8, 2025, to October 24, 2025.

    Criteria for Passage:

    In order for the termination to be approved, California Food and Agricultural Code Section 62717 specifies that:

    Not less than fifty-one percent (51%) of the total number of eligible producers in the state shall have voted in the referendum AND one of the following criteria must be satisfied:

    a) Sixty-five percent (65%) or more of the total number of eligible producers who voted in the referendum who produced fifty-one percent (51%) or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month commencement of the referendum period (April 2025) by all producers who voted in the referendum approve the plan, OR,

    b) Fifty-one percent (51%) or more of the total number of eligible producers who voted in the referendum who produced sixty-five percent (65%) or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month commencement of the referendum period (April 2025) by all producers who voted in the referendum, approve the plan.

    Summary of the Results of the Referendum Vote:

    Proportion of Eligible Producers that Participated: 63.76%

    Proportion of those Eligible Producers Voting in Favor: 40.46%

    Proportion of those Eligible Producers Voting in Opposition: 59.54%

    Proportion of the Voted Volume Represented by Eligible Producers in Favor: 47.55%

    Proportion of the Voted Volume Represented by Eligible Producers in Opposition: 52.45%

    In summary, 63.76% of the total number of eligible producers voted in the referendum, and 40.46% voted in favor, having produced 47.55% of the total amount of fluid milk in the state, among participating producers, in April 2025. Conversely, 59.54% voted in opposition, and produced 52.45% of the total amount of fluid milk in the state, among participating producers, in April 2025.

    Explanation of Results:

    63.76% of the total number of eligible market milk producers in the state voted, therefore the participation criteria was satisfied.

    a. Additionally, both elements of EITHER criterion in (a) OR (b) above must also be satisfied: The producers who accounted for 47.55% of the fluid milk produced by participants in the referendum, in April 2025 voted IN FAVOR, falling short of the threshold of 51% for the first element by 3.45%; AND 40.46% of the number of eligible producers voted IN FAVOR, falling short of satisfying the threshold of 65% for the second element by 24.54%. Therefore, because neither of the two elements were satisfied, the referendum is not approved through this criterion.

    b. 40.46% of eligible producers voted IN FAVOR, falling short of satisfying the 51% threshold by 10.54%; AND producers who accounted for 47.55% of the total number of fluid milk, produced by participants in the referendum, in April 2025 voted IN FAVOR, falling short of satisfying the threshold of 65% by 17.45%. Therefore, because neither of the two elements were satisfied, the referendum is not approved through this criterion.

    Since the outcome of this referendum does not meet the criteria set forth in Section 62717 of the California Food and Agricultural code, the Quota Implementation Plan will not be terminated. A further summary of the tally results and details on invalidated ballots are included with this notice.

    Anyone with questions regarding the referendum, should contact the Quota Administration Program at (916) 900-5012.

  • Unused Assessments Collected By The Dairy Marketing Branch Now Available To Fund Ca Dairy Industry-Focused Research

    The California Department of Food and Agriculture (Department) recently conducted a referendum among California Market Milk Producers to consider whether the Quota Implementation Plan (QIP) should be terminated. The deadline to vote in the referendum was September 10, 2025.

    On September 9, 2025, prior to the end of the voting period for the referendum, over 50 ballots were hand-delivered to the Department by a third party. Visual inspection upon receipt confirmed that the ballots had been removed from their sealed envelopes. Due to these unusual circumstances, the Department has decided to reissue the affected ballots and grant a special extension to vote to the producers whose ballots were received open. These new ballots are going out in the mail today; only properly completed and signed ballots, postmarked or otherwise received by the Department in a sealed envelope no later than October 24, 2025, will be counted.

    The Department will announce and notify all California Market Milk producers of the referendum results following tabulation of the ballots. Tabulation of ballots will not begin until the special extension period for receiving ballots has concluded.

    A copy of the notice to industry regarding the “Petition to Terminate the QIP #5” resubmitted by StopQIP on August 6, 2024 can be viewed here: https://www.cdfa.ca.gov/dairy/pdf/notices/2025_QIP_Petition_for_Referendum_Notice.p

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    The current QIP can be viewed here: https://www.cdfa.ca.gov/dairy/pdf/QuotaImplementationPlan.pdf.

    If you have any questions regarding the referendum, please contact the Quota Administration Program at pooling@cdfa.ca.gov or (916) 900-5012.

  • Referendum in Progress and Two Other Ways CA Dairy Producers Could Lose Quota This Year

    The summer California heat has been matched by an aggressive fight on multiple fronts to terminate the longstanding, CDFA-administered Quota Implementation Plan that impacts the return value California dairies producers get for their milk.  While taking no official stance on the subject, Paul Sousa of Western United Dairies met with Matthew Malcolm on California Ag Network to explain what producers need to know about the current referendum underway that would lead to the immediate termination of the program, as well as two other recent developments that could end the program as well. Watch this brief interview and stay current on this topic by reading California Dairy Magazine.

  • California Dairy Producers Prepare to Vote on Milk Price Adjustment QIP

    The debate over the California dairy industry’s Quota Implementation Plan (QIP) continues; but this time it’s not about whether to keep or sunset the program. Dairy producers will soon have the opportunity to vote in a referendum on some adjustments to the program that will affect all producers. Watch this brief interview with Paul Sousa from Western United Dairies as he explains to Matthew Malcolm on California Ag Network, and read more about it in California Dairy Magazine.

    Please thank this video’s sponsor Southern California Gas Company for their industry support.

  • United Dairy Families of California Forms to Resolve Quota Dispute

    On March 29, 2019 the Department received a petition to terminate the Quota Implementation Plan (QIP). Per the procedures for handling petitions, the Department has performed a review of the petition signatures and has determined that the twenty five percent (25%) threshold has not been achieved. Therefore, the petition will not be referred to the Producer Review Board.

    In calculating the qualified signatures, the Department utilized producer data from February 2019 as it was the most current producer information available. The review identified 1,197 dairy farms with various producer ownership status. When farms with common ownership were combined and counted as one producer, the Department identified 992 producers eligible for participation in the petition process.

    June Dairy Story

    The Department performed a review of the 283 signatures submitted as part of the petition. Of those, 243 signatures were validated. During its review, the Department utilized a variety of source documents to determine if the signatures submitted were valid under the requirements of the QIP and various Food and Agriculture Code sections (62716, 62717, 61834, 61836) pertaining to referendums. Signatures disqualified included Grade B shippers, dairy farms that had gone out of business, signatures that did not have the petition text included, signatures that did not match Department producer files, and signatures from individuals that were not listed as an owner per Department ownership files. When the 243 signatures were merged for common ownership, this resulted in signatures from 197 producers.

    The result of the petition review process revealed that nearly twenty percent (20%), or 197 of the 992 market milk producers submitted valid signatures.

    Regarding the announcement, Western United Dairymen shared, “Where does that leave us? Well for one, there is no restriction on when another petition can be submitted. So the same group or another can submit a petition to CDFA. With the petition in the rearview mirror, we can only hope this will give an incentive for the Stop QIP, United Dairy Families of California, or any other group that desires to take a leadership role on this challenging issue to get involved in effecting quota change, to sit down and discuss how to deal with the future of the QIP.”

    Geoff Vanden Heuvel from Milk Producers Council added, “A process is needed that will enable the California producer community to evaluate its options for the future with regards to quota. The existence of the STOP QIP movement has spawned the creation of another group of producers who organized specifically to focus on the quota issue.  That group is named the “United Dairy Families of California.” This group is committed to a process that seeks to find an equitable resolution to the quota issue. The existing cooperatives and trade associations have been understandably reluctant to get involved in this debate because its splits their membership. It would be in the best interest of the industry if a process emerged that would facilitate a long-term resolution of this issue. Ultimately this is a producer issue and for many producers a very personal one.”

  • Quota Implementation Plan (QIP) Dairy Producers Meetings

    Modesto, Calif., (October 19, 2017) – In addition to informational sessions conducted by California Dairies Inc. (CDI), Dairy Farmers of America (DFA) and Land O’Lakes (LOL), a series of joint dairy producer meetings will be held throughout the state in the next few weeks. The presentations will be brief to allow ample time for questions you may have. This is a producer-only process and 51% of ballots must be returned for the California Department of Food and Agriculture (CDFA) to even consider referendum results. Therefore, producer organizations in the state want you to be aware of the importance of your vote.

    • October 16, Stanislaus County Farm Bureau, 1201 L Street, Modesto, 10am
    • November 6, Chino, Chino Fairgrounds, 5410 Edison Avenue, Chino, 10:30am
    • November 7, Tulare, Heritage Complex, 4450 S. Laspina Ave, Tulare, Conference Dining Room, 10am

    Agenda:

    • Statewide QIP Referendum: Description of the QIP and main features
    • Questions & Answers

    Note: The Quota Implementation Plan (QIP) was delivered to the post office for mailing on October 6. The ballot (which is on blue paper) is in a 9X13 white envelope with BALLOT ENCLOSED noted on the envelope. Included in the envelope is a cover letter with instructions, the QIP language, and a postage paid envelope to return the ballot. The close of the referendum is December 4, 2017.

    We believe that supporting the QIP is the only path forward to allow fair consideration for a FMMO in CA and are urging you to make an informed decision by attending one of the meetings referenced above prior to casting your vote.

    LIVESTREAM NOW AVAILABLE!

    Contact information: California Dairy Campaign, Lynne McBride: lmcb44@comcast.net, 925-385-0217 – Milk Producers Council, Kevin

    Abernathy: kevin@milkproducers.org, 209-678-0666 – Western United Dairymen, Anja Raudabaugh: araudabaugh@westernuniteddairymen.com, 916-532-9974 – California Dairies, Inc., Rob Vandenheuvel: RVandenheuvel@californiadairies.com, 559-679-5651 – Dairy Farmers of America, Francis Pacheco: fpacheco@dfamilk.com, 951-493-4942 – Land O’Lakes, Pete Garbani: PRGarbani@landolakes.com, 559-285-6357

  • Quota Implementation Plan (QIP) Dairy Producers Meetings

    Modesto, Calif., (October 10, 2017) – In addition to informational sessions conducted by California Dairies Inc. (CDI), Dairy Farmers of America (DFA) and Land O’Lakes (LOL), a series of joint dairy producer meetings will be held throughout the state in the next few weeks. The presentations will be brief to allow ample time for questions you may have. This is a producer-only process and 51% of ballots must be returned for the California Department of Food and Agriculture (CDFA) to even consider referendum results. Therefore, producer organizations in the state want you to be aware of the importance of your vote.

    • October 16, Stanislaus County Farm Bureau, 1201 L Street, Modesto, 10am
    • November 6, Chino, Chino Fairgrounds, 5410 Edison Avenue, Chino, 10:30am
    • November 7, Tulare, Heritage Complex, 4450 S. Laspina Ave, Tulare, Conference Dining Room, 10am

    Agenda:

    • Statewide QIP Referendum: Description of the QIP and main features
    • Questions & Answers

    Note: The Quota Implementation Plan (QIP) was delivered to the post office for mailing on October 6. The ballot (which is on blue paper) is in a 9X13 white envelope with BALLOT ENCLOSED noted on the envelope. Included in the envelope is a cover letter with instructions, the QIP language, and a postage paid envelope to return the ballot. The close of the referendum is December 4, 2017.

    We believe that supporting the QIP is the only path forward to allow fair consideration for a FMMO in CA and are urging you to make an informed decision by attending one of the meetings referenced above prior to casting your vote.

    Contact information:
    California Dairy Campaign, Lynne McBride: lmcb44@comcast.net, 925-385-0217
    Milk Producers Council, Kevin Abernathy: kevin@milkproducers.org, 209-678-0666
    Western United Dairymen, Anja Raudabaugh: araudabaugh@westernuniteddairymen.com, 916-532-9974 California Dairies, Inc., Rob Vandenheuvel: RVandenheuvel@californiadairies.com, 559-679-5651
    Dairy Farmers of America, Francis Pacheco: fpacheco@dfamilk.com, 951-493-4942
    Land O’Lakes, Pete Garbani: PRGarbani@landolakes.com, 559-285-6357