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Agri-Mark sets production limits

Dairy farmer members have voted to manage their milk supply in the Northeast U.S.

Agri-Mark, which represents more than 850 dairy farms throughout New England and New York, will charge members a five dollar per hundredweight penalty for overproducing beginning in January.

Officials say the policy is meant to slow down production in the region to more manageable levels.  In a letter to farmers, Agri-Mark says increasing milk production is financially straining the co-op while regional demand has slowed.  Members producing two million pounds or less annually are exempt from the rules. 

Nearly half of Agri-Mark’s members milk 60 cows or less and officials say supply management within a co-op is not a new concept to protect its members.