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Background

New Jersey’s milk production in 2003 totaled 216 million lbs. valued at $27.6 million. Milk production in 1991 totaled 349 million lbs. valued at $54 million. New Jersey’s estimated 11,000 milk cows are primarily located in the counties of Salem, Sussex, Warren and Burlington. Those four counties produce 76 percent of New Jersey’s milk. New Jersey’s Dairy industry provides a fresh and healthy source of dairy products to all New Jersey residents young and old.

Over the past decade, New Jersey witnessed the closure of more than half its dairy farms. Today, the number of commercial dairy farms statewide totals approximately 119. Farmers’ decisions to abandon dairy farming are largely attributable to the high cost of doing business, coupled with volatile pricing in the federal milk marketing system, which results in low profits. Though the number of farms has rapidly decreased, milk production has declined at a slower rate due to herd expansion and improved dairy herd production and management.

In 2004 the Department worked with Rutgers Food Innovation Research Center on a value-added dairy project. The project identified cheeses as the market to enter with a base of 10 percent of the raw milk until the market was established for the short term. The study identified that the use of the Jersey Fresh logo to identify locally produced fluid milk would garnish a reasonable profit for the remainder of the raw milk fitting the program standards. The project will continue to look at new packaging and new products such as flavored milk. The nutritional benefits of drinking milk at a young age were promoted to schoolchildren through the Healthy Choices, Healthy Kids initiative. To allow for milk to be branded as “Jersey Fresh” new guidelines were developed to define, “Jersey Fresh Milk,” “Jersey Fresh Flavored Milk,” “Made with Jersey Fresh Milk,” and “Made with Premium Jersey Fresh Milk.”

In 2005, the Department will be seeking to increase demand for New Jersey milk, working to evaluate the potential of value-added dairy products, evaluating new legislation to provide stable on-farm milk pricing, and looking at ways to ensure quality milk production and food safety.

In addition, the Department formed the Garden State Dairy Alliance to provide better services to the New Jersey dairy farmers and supporting industry, and to develop a more comprehensive, efficient delivery of programs offered by the New Jersey Department of Agriculture, and Rutgers’s New Jersey Agricultural Experiment Station.
www.state.nj.us/agriculture/dairyalliance.htm

Dairy Strategies

4.1 Evaluate Legislation and Regulation
37) STRATEGY – Continue tracking possible federal legislation that encompasses the Milk Income Loss Contract (MILC) program to ensure more stable short-term on-farm milk prices. Work with the State’s Ratification Committee to continue moving that process forward while considering other new options.

38) STRATEGY – Explore options related to creating a unified New Jersey Dairy Council to meet the needs of both North and South Jersey producers and allow for greater local control over advertising budgets.

4.2 Increase Demand for Milk

39) STRATEGY- Develop a strategy to promote dairy product sales at community and retail markets throughout the State.

40) STRATEGY – Explore value-added products and the market potential for flavored milk, yogurt and other dairy products. Evaluate the concept of marketing low-fat flavored milk in New Jersey’s schools. Pursue a value-added grant for this project.

41) STRATEGY - Work with the Garden State Dairy Alliance to support the dairy industry with technical assistance to coordinate a multi-disciplinary team of State and Federal partners to cooperatively address issues related to animal health, milk quality, nutrient management, bio-security and dairy industry development. The alliance will work to help sustain a viable and thriving dairy industry in New Jersey

42) STRATEGY – Support the branding and distribution of milk as “Jersey Fresh,” “Made with Premium Jersey Fresh Milk,” “Made with Jersey Fresh Milk”, “Jersey Fresh Flavored Milk” and “Jersey Fresh Milk.”

43) STRATEGY – In conjunction with the Healthy Choices, Healthy Kids initiative, continue to promote the nutritional benefits of drinking milk at a young age. The Department and producers will work with the North Dairy Council to promote the initiative.

44) STRATEGY - Work with producer groups to market fluid milk products to co-packers and establish a processing facility to produce high-end soft cheeses and other products.

4.3 Ensure Quality Production and Food Safety
45) STRATEGY - Continue working to protect the health of the dairy industry from the threat of devastating and economically damaging diseases. Seek to secure funding for Rutgers Milk Quality Program to document the quality of raw and processed milk and milk products to assure the safety and wholesomeness of dairy products. Continue working with Rutgers and NJ Farm Bureau to promote the FIN Pak Program, a software program for dairy farmers that promotes good business practices through financial management analyses.