62765

FOOD AND AGRICULTURAL CODE
SECTION 62765




62765.  The Department of Food and Agriculture, after consulting
with its dairy advisory committee, shall complete a study of various
proposals affecting regulated milk pricing and pooling programs by
April 15, 2002. In particular, it shall study the following:
   (a) The impact of the current federal forward price contract
program on the regulated pricing and pooling programs operating in
federal milk marketing orders and review other risk management tools
available to dairy farmers and dairy processors.
   (b) The impact of current forward price contract programs
administered by California dairy farmer cooperatives on participating
producers, on proprietary processors in procuring milk, and on
affected products in the marketplace and the comparability of those
programs with those operating within federal milk marketing orders.
   (c) The impact of the various forward contract programs in use or
proposed on pool revenue and price when those contracts are performed
within the California milk pooling program.
   (d) The impact of the various forward contract programs in use or
proposed on pool revenue and price when those contracts are performed
outside the California milk pooling program.
   (e) The study may also include a review of the impact of requiring
class 2 and 3 milk to be reported to the pool.
   (f) A review of the advantages and disadvantages of a protein
pricing payment system that is similar to the system used in federal
milk marketing orders.
   (g) This study shall be submitted to the respective chairpersons
of the Senate Committee on Agriculture and Water Resources and the
Assembly Committee on Agriculture.