Session 3

Jarred Mello
Session # 3
​On August 7-9 the Western United Dairy Leaders met in Modesto for our Session # 3. We met in Modesto, CA at the WUD office in down town Modesto. This session was about California milk pricing. Our first presentation was on the milk pricing formula. Annie AcMoody, WUD economist, headed this presentation. It was very informational. Annie painted a good picture of a very complicated California pricing system. I left there with a comfortable idea of how it all works.
​Following that, Dr. William Schiek talked to us about the domestic and global market outlook. Dr. William Schiek is an economist from the Dairy Institute of California. Being the second presentation, it was really interesting. Looking at current and future markets gives a positive outlook for dairy producers.
​That evening we went to dinner at Surlas restaurant with Mike Marsh and Ray Sousa. Dinner was very good. Ray Sousa is a past president and board member of WUD. He gave us a good idea of what it was like being a dairyman before the California pooling and quota system. He is very knowledgeable on both the dairy producer side and the political side of the industry. It seems like we need more people like Ray in California.
​Wednesday morning after breakfast, we met again at the WUD office to meet a few people from CDFA. Candace Gates from the Dairy Marketing Branch talked to us about its role in setting milk prices. Mike Francesconi talked to us about Manufacturing costs and Cost of Production studies. Amber Rankin, an ag economist, talked to us about the California Hearing Process. They Were all very interesting lectures that provided a good insight to their roles in the dairy industry.
​Following our last break of the dairy, a few gentlemen from the California Pooling Branch and Producer Security Trust Fund talked to us about their roles in the industry. John Lee, who is the CDFA Pooling Branch Chief, gave us a short intro on how the branch is set up. Later Don Shippelhoute closed things up with talking about the different pooling operations. This presentation was really interesting because there were so many questions about how the pool worked. Explain the operation of the pool took a colorful drawing on the white board that needed lots of explanation.
​Later that even the Dairy Leaders went to have appetizers at the Firkin & Fox pub with Annie AcMoody. Following that, we went to a Modesto Nuts baseball game. It was very entertaining and a good bonding experience for the group.
​Thursday was only a half day for us. We met at the WUD office again and kicked things off with Mike Marsh informing us about all the things WUD are dealing with in our industry right now.
​After that Dr. Eric Erba, from CDI talked to us about transportation, milk procurement challenges, plant capacity, and production base issues that CDI deals with. This was an interesting presentation but maybe a little long. I say that because we got shorted on time with our last speaker, Tiffany LaMendola.
Tiffany LaMendola, from Blimling and Associates, talked to us about Margin Management. It was really interesting stuff. I just wish we had enough time to talked about it and ask more questions.
Overall Session # 3 was the most interesting so far. Milk pricing is one of the most confusing and hardest things to comprehend in the dairy industry. Leaving session # 3 though, I feel a lot more comfortable and have a better understanding of milk pricing and everything that goes into it.