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Hearings Committee on Agriculture House Of HEARING TO REVIEW ECONOMIC CONDITIONS FACING THE DAIRY INDUSTRY HEARINGS BEFORE THE SUBCOMMITTEE ON LIVESTOCK, DAIRY, AND POULTRY OF THE COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION JULY 14, 21, 28, 2009 Serial No. 111–24 ( Printed for the use of the Committee on Agriculture agriculture.house.gov U.S. GOVERNMENT PRINTING OFFICE 53–102 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 0ct 09 2002 13:01 Nov 12, 2009 Jkt 041481 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 I:\DOCS\111-24\53102.TXT AGR1 PsN: BRIAN COMMITTEE ON AGRICULTURE COLLIN C. PETERSON, Minnesota, Chairman TIM HOLDEN, Pennsylvania, FRANK D. LUCAS, Oklahoma, Ranking Vice Chairman Minority Member MIKE MCINTYRE, North Carolina BOB GOODLATTE, Virginia LEONARD L. BOSWELL, Iowa JERRY MORAN, Kansas JOE BACA, California TIMOTHY V. JOHNSON, Illinois DENNIS A. CARDOZA, California SAM GRAVES, Missouri DAVID SCOTT, Georgia MIKE ROGERS, Alabama JIM MARSHALL, Georgia STEVE KING, Iowa STEPHANIE HERSETH SANDLIN, South RANDY NEUGEBAUER, Texas Dakota K. MICHAEL CONAWAY, Texas HENRY CUELLAR, Texas JEFF FORTENBERRY, Nebraska JIM COSTA, California JEAN SCHMIDT, Ohio BRAD ELLSWORTH, Indiana ADRIAN SMITH, Nebraska TIMOTHY J. WALZ, Minnesota ROBERT E. LATTA, Ohio STEVE KAGEN, Wisconsin DAVID P. ROE, Tennessee KURT SCHRADER, Oregon BLAINE LUETKEMEYER, Missouri DEBORAH L. HALVORSON, Illinois GLENN THOMPSON, Pennsylvania KATHLEEN A. DAHLKEMPER, BILL CASSIDY, Louisiana Pennsylvania CYNTHIA M. LUMMIS, Wyoming ERIC J.J. MASSA, New York BOBBY BRIGHT, Alabama BETSY MARKEY, Colorado FRANK KRATOVIL, JR., Maryland MARK H. SCHAUER, Michigan LARRY KISSELL, North Carolina JOHN A. BOCCIERI, Ohio SCOTT MURPHY, New York EARL POMEROY, North Dakota TRAVIS W. CHILDERS, Mississippi WALT MINNICK, Idaho PROFESSIONAL STAFF ROBERT L. LAREW, Chief of Staff ANDREW W. BAKER, Chief Counsel APRIL SLAYTON, Communications Director NICOLE SCOTT, Minority Staff Director SUBCOMMITTEE ON LIVESTOCK, DAIRY, AND POULTRY DAVID SCOTT, Georgia, Chairman JIM COSTA, California RANDY NEUGEBAUER, Texas, Ranking STEVE KAGEN, Wisconsin Minority Member FRANK KRATOVIL, JR., Maryland BOB GOODLATTE, Virginia TIM HOLDEN, Pennsylvania MIKE ROGERS, Alabama LEONARD L. BOSWELL, Iowa STEVE KING, Iowa JOE BACA, California K. MICHAEL CONAWAY, Texas DENNIS A. CARDOZA, California ADRIAN SMITH, Nebraska BETSY MARKEY, Colorado DAVID P. ROE, Tennessee SCOTT MURPHY, New York WALT MINNICK, Idaho CHANDLER GOULE, Subcommittee Staff Director (II) VerDate 0ct 09 2002 13:01 Nov 12, 2009 Jkt 041481 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 I:\DOCS\111-24\53102.TXT AGR1 PsN: BRIAN C O N T E N T S Page Thursday, July 14, 2009 Murphy, Hon. Scott, a Representative in Congress from New York, submitted statement .............................................................................................................. 99 Neugebauer, Hon. Randy, a Representative in Congress from Texas, opening statement .............................................................................................................. 2 Peterson, Hon. Collin C., a Representative in Congress from Minnesota, open- ing statement ........................................................................................................ 22 Prepared statement .......................................................................................... 4 Scott, Hon. David, a Representative in Congress from Georgia, opening state- ment ...................................................................................................................... 1 Prepared statement .......................................................................................... 2 Submitted letters .............................................................................................. 89 Thompson, Hon. Glenn, a Representative in Congress from Pennsylvania, submitted letter .................................................................................................... 98 WITNESSES Courtney, Hon. Joe, a Representative in Congress from Connecticut ................ 5 Prepared statement .......................................................................................... 6 Welch, Hon. Peter, a Representative in Congress from Vermont ........................ 7 Prepared statement .......................................................................................... 10 Submitted statements ...................................................................................... 101 Miller, James ‘‘Jim’’ W., Under Secretary for Farm and Foreign Agricultural Services, U.S. Department of Agriculture, Washington, D.C. .......................... 14 Prepared statement .......................................................................................... 16 Kruse, Paul W., President and CEO, Blue Bell Creameries, L.P.; Chairman, International Dairy Foods Association, Brenham, TX ...................................... 43 Prepared statement .......................................................................................... 45 Wakefield, Tom, Member, Board of Directors, National Milk Producers Fed- eration; Co-Owner, J.T.J. Wakefield Farms, Inc., Bedford, PA ....................... 52 Prepared statement .......................................................................................... 54 Bouma, Brad, President, Select Milk Producers, Inc., Plainview, TX ................. 58 Prepared statement .......................................................................................... 59 Souza, Ray, President, Board of Directors, Western United Dairymen; Oper- ator, Mel-Delin Dairy, Turlock, CA; on behalf of California Daries, Inc. ........ 63 Prepared statement .......................................................................................... 66 SUBMITTED MATERIAL Dairy Farmers of America, submitted statement ................................................. 104 Etka, Steven, Coordinator, Midwest Dairy Coalition, submitted statement ...... 106 National Farmers Union, submitted statement .................................................... 108 Tuesday, July 21, 2009 Baca, Hon. Joe, a Representative in Congress from California, prepared state- ment ...................................................................................................................... 118 Kagen, Hon. Steve, a Representative in Congress from Wisconsin, prepared statement .............................................................................................................. 119 Neugebauer, Hon. Randy, a Representative in Congress from Texas, opening statement .............................................................................................................. 116 Peterson, Hon. Collin C., a Representative in Congress from Minnesota, open- ing statement ........................................................................................................ 117 (III) VerDate 0ct 09 2002 13:01 Nov 12, 2009 Jkt 041481 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 I:\DOCS\111-24\53102.TXT AGR1 PsN: BRIAN IV Page Peterson, Hon. Collin C., a Representative in Congress from Minnesota, open- ing statement—Continued Prepared statement .......................................................................................... 117 Thompson, Hon. Glenn, a Representative in Congress from Pennsylvania, prepared statement .............................................................................................. 119 Scott, Hon. David, a Representative in Congress from Georgia, opening state- ment ...................................................................................................................... 115 WITNESSES Welch, Ed, President and CEO, Associated Milk Producers Inc., New Ulm, MN; on behalf of Midwest Dairy Coalition ........................................................ 120 Prepared statement .......................................................................................... 122 Plourd, Philip G., President, Blimling and Associates, Inc./Roger W. Blimling, Inc., Cottage Grove, WI ....................................................................................... 125 Prepared statement .......................................................................................... 126 Williams, J. Everett, President, Georgia Milk Producers, Inc., Madison, GA .... 131 Prepared statement .......................................................................................... 132 Supplementary material .................................................................................. 171 Rozwadowski, Paul J., Chairman, Dairy Subcommittee, National Family Farm Coalition; Dairy Farmer, Stanley, WI ...................................................... 134 Prepared statement .......................................................................................... 136 Hoese, Scott, President, Carver County Farmers Union; Dairy Farmer, Mayer, MN; on behalf of National Farmers Union ........................................................ 140 Prepared statement .......................................................................................... 142 DeJong, Donald A., Owner and Manager, Northside Farms, LLC; Owner and CEO, AgriVision Farm Management, LLC; Owner and Manager, Nat- ural Prairie Dairy Farms, LLC; Owner and Manager, DJ Farms, Ltd.,
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