2018 December Board Book

Dairy Review Volume 22 Issue 10 California

October 2018

TheQuota ImplementationPlan (QIP) EffectiveNovember 1, 2018

The Quota Implementation Plan (QIP) establishes a stand alone quota program in California, effective November 1, 2018. This program will stand alone from Class prices which will be administered by USDA. This is a major shift from the current system where quota premiums are paid for from the class price revenue pool. Under the QIP, producers of quota milk will continue to receive an additional $0.195 per pound of Quota SNF (which equals $1.70 per cwt on 8.7% SNF milk). The quota premiums will continue to be adjusted by the applicable Regional Quota Adjuster. The most visible feature of the new QIP will be the funding mechanism. The quota premiums will be funded by an assessment of $0.0436 per pound (approximately $0.38 per cwt of 8.7% SNF milk) of Market Milk SNF produced and delivered in California. The administration of the program will be funded by a producer assessment of $0.003 per cwt collected on all market milk produced and delivered in California. Additional information regarding the Quota Implementation Plan can be found at: https://www.cdfa.ca.gov/dairy/ pdf/QuotaImplementationPlan.pdf Questions regarding the transition can be directed to Donald Shippelhoute via telephone at (916) 900-5124 or via email at Donald.shippelhoute@cdfa.ca.gov .

CALIFORNIA MILK PRODUCTION Average Daily Basis 2016, 2017, 2018 Average Daily Basis, 2016 - 2018 California Milk Production

120

115

110

105 In Million Pounds

100

1

2

3

4

5

6

7

8

9

10

11

12

2016

2017

2018