Pennsylvania’s Governor Rendell is pleased with the action of the Pennsylvania Milk Marketing Board to possibly capture over-order premiums for milk sold out-of-state.
Governor Rendell petitioned the board last year to use its authority to capture over-order premiums in other marketing areas, a move that would boost the profitability of Pennsylvania dairy producers.
The board agreed to consider the part of the Governor’s recommendation that would establish over-order premiums on milk produced and processed in Pennsylvania and sold in states with mandated producer premium. This change, if implemented, will make approximately 6.5 percent more Pennsylvania milk eligible for a premium.
Milk produced, processed and sold within the commonwealth receives a premium above the latest federal order milk price. However, if milk is processed or retailed in another marketing area, producers do not receive that money. Only 15-percent of the fluid milk produced in Pennsylvania is eligible for current premiums. By capturing a larger portion that is available in the marketplace, the state’s producers will increase their income.