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HomeMy WebLinkAboutCOM 0968.002 2012-2014 .)z5. 4{fl -I Ctnhq COL;` `( "L[RK C 0 E-!^. UA 11 Testimony from Mauna Kea Moo, LLC. 2018 fn -6 AM 10: 51 To whom it may concern, Mauna Kea Moo, LLC is concerned regarding the resent proposal of Big Island Dairy to lower the minimum milk price. According to the Milk Act of 1967 changes need to be a result of a combined effort of all dairy farmers. Not just one. In the past, if a change was going to be made,ALL dairy farmers would be called together to discuss it. If farmers wanted the milk price increased,for example,they would call a meeting and discuss it then have a vote. It was not up to one farmer to make a change that had the potential of affecting everyone. Clover Leaf Dairy was not made aware of Big Island Dairy's proposal nor was the other two up and coming dairies. None the less we have never heard of a group of farmers wanting to lower the milk price. The quota milk price does not need to be changed, especially reduced. If Big Island Dairy wants to lower their prices they can negotiate a lower price for their excess milk with the processor. This is already a part of the existing milk act and would have no potential lasting effect on any other existing or up and coming farmers. Lowering the milk price has the grave potential of putting smaller dairy farmers out of business. It also carries the possibility of removing up and coming farms from the picture. If smaller farms are gone and no new ones are developed then Big Island Dairy could turn around and ask for a price increase. So we ask, "Are we allowing one dairy to tell us how things are going to be run?" It is also concerning that Mauna Kea Moo (as it stands) cannot ship milk to Meadow Gold (see emails that I have provided with this letter). Previously we had a verbal agreement with them stating that they would take the milk we produced. When asked to confirm that this agreement was still in place we were told that we would need to discuss it with upper management, since the organization had changed structurally. Mind you, it took a year to obtain our first verbal agreement. This makes it sound as if Meadow Gold is no longer interested in local milk from new producers. If this waiver was to go through and only Big Island Dairy's milk was sold at a lower cost and other dairy farmer's prices would remain the same the effect is still felt. Why would a processor purchase milk at a higher price from smaller farms when they can obtain milk from a larger farm at a cheaper cost? Our understanding is that Meadow Gold does not contract with farmers stating that they will take their milk before purchasing from the mainland. We run the risk of losing these small farms due to the fact that the processor may decide to no longer accept their milk due to the higher cost. As a result these farms will be out of business. Comm. `0Cf• 2,^, Ref. To: Ref. Date 2014 Mauna Kea Moo LLC shipping milk to Meadow Gold. lnbox x Kees Kea <keeskea @gmail.com> Jul 16 to Glenn Aloha Glenn, Our Lease with the DLNR is finally in place and will go into affect on August 1. 2014. I talked with Mel on Saturday 07/12/2014 and he said that our arrangement with him to take the milk at the Hilo plant is still acceptable as far as he is concerned, so we would like to reconfirm our understanding of Meadow Gold's agreement to accept milk from Mauna Kea Moo, LLC that was made on October 27, 2011. If you do not reply to this email within 15 days, I will assume that this agreement is still acceptable to you and Meadow Gold. Attachments area Preview attachment mg accepting milk(1).pdf glenn_muranaka @deanfoods.com Jul 16 to doug_sheehan, me Aloha Kees: The organization has changed structurally and decisions regarding milk purchases are coordinated through Supply Chain with corporate approval. Mel will need to coordinate your proposal through region then corporate. Mahalo, Glenn Mauna Kea Moo, LLC P.O. Box 461, Papaikou, HI 96781 808-938-9249 or 808-937-4770 October 27, 2011 Glenn K. Muranaka President and General Manager Meadow Gold Dairies 925 Cedar Street Honolulu, HI 96814 Aloha Glenn, I would like to express our appreciation for Meadow Gold decision to accept the milk produced by Mauna Kea Moo, LLC. I understand from our conversation on October 27, 2011,that the milk produced by Mauna Kea Moo, LLC will be under the Honolulu milk shed and that arrangements should be made with Mel the Hilo plant manager. We look forward to a long term business relationship between Meadow Gold Dairies/Dean Foods and Mauna Kea Moo, LLC. Mahalo, Kees and Malena Kea Mauna Kea Moo, LLC