Attached HERE is a notice being sent to milk handlers and producers regarding an increase in a milk assessment effective January 1, 2022.
This assessment was inadvertently deleted from statute when the California Milk Marketing Order was repealed as part of the transition to the FMMO. It was restored in statute the following year to ensure the funding necessary for the inspection program (AB 590; Ch.304, Statutes of 2019). This work by CDFA does not cover any of the old fluid milk testing program functions that are now administered by USDA. The fee is paid on all milk (both Grade–A and manufacturing grade) at a 2:1 Producer to Processor ratio. The current milk assessment rates are $0.0008/cwt for producers and $0.0004/cwt for handlers.
These funds are collected by the administrative operations of the Quota Implementation Program in the Marketing Division of CDFA and transferred to MDFS on a monthly basis. The assessment will be increased to $0.0009/cwt and $0.00045/cwt for producers and handlers, respectively. This increase is consistent with the $0.0001 per cwt per annum limit and the 2:1 producer to processor ratio required by statute. The fee was not increased in 2020 or 2021.