Regulatory Watch

Farm Bill delay stifles dairy investment

Davisco Foods International CEO Jon Davis told a key House subcommittee that his company is opposed to a provision of the 2012 Farm Bill that would implement price controls on milk. Davis told the House Agriculture Subcommittee on Livestock, Dairy and Poultry that his business has put expansion plans on hold until the supply management issue is resolved.

“Davisco has recently invested more than $100 million in our factories largely because of our growing export business,” states Davis. “While supply management legislation is being debated, most if not all of the next wave of dairy processing investment is on hold. We simply can’t afford to commit capital when we don’t know if we will have the milk supply to operate those potential new investments.”

The proposed milk supply management program, called Dairy Market Stabilization, is included in the Senate version of the bill. The House is currently assembling its version.

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