Service Area Strategic Plan
5/22/2013   5:58 pm
Department of Agriculture & Consumer Services (301)
Biennium:
Service Area 1 of 1
Milk Marketing Regulation (301 532 04)
Description

This service area creates and administers regulations that foster an orderly state milk-marketing environment to provide for a constantly available supply of milk production dedicated to fluid milk product for use by citizens in controlled markets.
Background Information
Mission Alignment and Authority
  • Describe how this service supports the agency mission
    This service area directly aligns with VDACS mission of providing marketing and consumer protection through the provision of a constantly available source of a healthy and wholesome food source sufficient to satisfy the demands of the citizens of the Commonwealth.
  • Describe the Statutory Authority of this Service
    Chapter 32 of Title 3.2 establishes the State Milk Commission and provides for its composition and authority.
Customers
Agency Customer Group Customer Customers served annually Potential annual customers
Agribusinesses, Ag Cooperatives and Membership Organizations Cooperative Associations representing licensed producers 7 7
Licensed processors, distributors and producers Licensed processors and distributors 179 180
Livestock producers, dealers, markets Licensed producers 1,109 1,065

Anticipated Changes To Agency Customer Base
The number of licensed dairy producers will continue to decline in future years. Dairy producers continue to go out of business due to retirements, conversions of farmland to other uses through urban sprawl, and an inability to produce milk in a profitable manner. In the last ten years there has been a 4.13% decrease in the number of licensed producers. Despite producer losses milk production is expected to continue in quantities adequate to meet demand.

The number of cooperative associations will continue at approximately the same level.

The number of licensed processors and distributors will remain approximately the same with a direction of modest increases anticipated. In the last ten years there has been a 28.15% increase in licensees. However, this trend has slowed in the last few years. The number of licensees directly impacts the population that is monitored through reporting, auditing and investigations.
Partners
Partner Description
[None entered]
Products and Services
  • Factors Impacting the Products and/or Services:
    The number of dairy producers continues to decline annually placing stress on the availability of raw milk production to meet consumer demand. Declining milk production in the Southeast places stress on the Northeast and upper Midwest producers to supply milk production to processors in that region. Virginia is a net exporting state and the Southeast is the primary region that receives those exports.

    The continued increase in specialty fluid milk products results in the need to license processors and their distributor customers who market these products in Virginia controlled markets.

    The availability of individuals with the technical knowledge of the dairy industry business practices, pricing of dairy production and utilization, and accounting principles is declining rapidly. With anticipated retirements successful recruitment of staff will be difficult. Extensive and costly training will be required of new employees.

    The current national dairy marketing structure and environment, as well as that in Virginia, is experiencing rapid and dynamic changes through both vertical and horizontal integration. These changes place stress on the ability of the Milk Commission to ensure that an effective regulatory structure is in place to supervise and control all aspects of the production, processing and marketing of milk.
  • Anticipated Changes to the Products and/or Services
    None.
  • Listing of Products and/or Services
    • Establish and manage an annual milk production supply system that meets the need of fluid milk product demand of citizens in controlled markets.
    • Establish and announce advanced monthly producer prices for delivered milk production. A monthly price for non-fluid milk products is also established and announced.
    • Review, audit and apply established milk accounting standards to licensed distributors monthly reports of receipts and utilization to calculate and communicate producer delivery values.
    • Review, analyze and audit distributors monthly reports from distributor records to ascertain correctness and the need for adjustments. Examine licensee records and business practices for compliance to regulations.
    • Investigate all complaints regarding compliance to regulations.
    • License all processors, distributors, producer-distributors, and retailers marketing fluid milk products into Virginia controlled markets.
    • License producers who will produce and deliver raw milk to licensed processors supplying fluid milk products into Virginia controlled markets. Account for licensed producer’s production.
Finance
  • Financial Overview
    [Nothing entered]
  • Financial Breakdown
    FY 2011    FY 2012
      General Fund     Nongeneral Fund        General Fund     Nongeneral Fund  
    Base Budget $0 $755,801    $0 $755,801
    Change To Base $0 $0    $0 $0
               
    Service Area Total   $0  $755,801     $0  $755,801 
Human Resources
  • Human Resources Overview
    [Nothing entered]
  • Human Resource Levels
    Effective Date      
    Total Authorized Position level null    
    Vacant Positions null    
    Current Employment Level 0.0    
    Non-Classified (Filled)    
    Full-Time Classified (Filled)    breakout of Current Employment Level
    Part-Time Classified (Filled)    
    Faculty (Filled)    
    Wage    
    Contract Employees    
    Total Human Resource Level 0.0   = Current Employment Level + Wage and Contract Employees
  • Factors Impacting HR
    [Nothing entered]
  • Anticipated HR Changes
    [Nothing entered]
Service Area Objectives
 
  • Maintain a system that supports an orderly state milk market to promote the production of a supply of competitively priced fluid milk that satisfies Virginia consumer demand.
    Objective Description
    The provision of an adequate and constant supply of fluid milk products, a vital and healthy food source, to the citizens of the Commonwealth promotes public welfare and health.
    Objective Strategies
    • Enhance staff skill levels through formal and in-house training which support and maintain the Commission’s operational activities that provide for an orderly milk market.
    • Increase the efficiency of informational flow between customers and the Commission by encouraging the use of technology.
    • Provide continuous assistance and training to customers on regulatory requirements to improve compliance.
    Link to State Strategy
    • nothing linked
    Objective Measures
    • Percentage of available fluid milk processor audits completed
      Measure Class:
      Other
      Measure Type:
      Outcome
      Measure Frequency:
      Annual
      Preferred Trend:
      Maintain
      Measure Baseline Value:
      100
      Date:
      6/30/2009

      Measure Baseline Description: In FY 09 100% of available fluid milk processor audits were completed

      Measure Target Value:
      100
      Date:
      6/30/2012

      Measure Target Description: Maintain completed fluid milk processor audits at 100%

      Data Source and Calculation: This measure is calculated from information derived from monthly audit tracking reports and the annual log of compelted audits.


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