Posted on: Wednesday, October 27, 2004

Big Island milk rate may rise

By Kevin Dayton
Advertiser Big Island Bureau

HILO, Hawai'i — The state Board of Agriculture yesterday unanimously approved an increase in the minimum price Big Island dairy farmers are paid for their milk.

The proposed new rate would require milk processors to pay Big Island farmers a minimum of $2.28 per gallon of raw milk, up from $2.02 per gallon today.

The increase would apply only to the five active Big Island dairy farming operations, said Janelle Saneishi, public information officer for the department.

If the increase wins final approval from Gov. Linda Lingle, processor Meadow Gold Dairies and retailers will decide how much of the increase is passed on to consumers. This increase affects the minimum price processors pay farmers for milk.

The board gave the approval at its meeting in Hilo yesterday morning. The increase would be the first granted to Big Island dairy farmers since 1991.

"A cost production study by the Hawai'i Department of Agriculture showed that this increase in the minimum price requested by Big Island dairy farmers was justified and appropriate," said Sandra Lee Kunimoto, who chairs the state Board of Agriculture. "The Big Island is the only island that is self-sufficient in milk and even sends milk to other islands and it's crucial that we all support 'Island fresh' milk, including retailers and consumers."

The dairy industry has been regulated under state law since 1967.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com or (808) 935-3916.