Michigan Milk Producers Association recently paid $1.6 million in cash patronage refunds to its dairy farmer members. This cash allocation represents 25 percent of the $6 million net earnings generated by the cooperative in fiscal year 2015.
"The over $5 million in patronage refunds and equity retirements we've recently returned to our member-owners speak to the financial viability of MMPA," Joe Diglio, MMPA general manager said. "Our cooperative has served Michigan dairy farmers for an entire century-through all the ups and downs of the industry-due to our high-quality milk supply, responsible financial management and competitive member value return."
The cash patronage returned includes 100 percent of the farm supply earnings and 25 percent of the milk marketing earnings. All members who marketed milk through MMPA for fiscal year 2015 received a portion of the $1.6 million.
MMPA members received other cash payments in April 2015 of $3.6 million through retirement of the cooperative's 2006 equities. With the current payment of $1.6 million, cash payments in the last 10 months total over $5.2 million.
Cash patronage funds and equity allocations are based on the amount of milk each individual member farm marketed and on the supplies purchased through the cooperative during the year in which the earnings were achieved. Under the current board policy, the non-cash balance of the equity allocation will be revolved back to the members in future years.
Michigan Milk Producers Association is a member owned and operated dairy cooperative serving approximately 2,000 dairy farmers in Michigan, Indiana, Ohio and Wisconsin.