Michigan Milk Producers Association recently paid $1.8 million in cash patronage refunds to its dairy farmer members. This cash allocation represents 25% of the $6.3 million net earnings generated by the cooperative in fiscal year 2012. The cash patronage returned includes 100% of the farm supply
earnings and 25% of the milk marketing earnings. All members who marketed milk through MMPA for fiscal year 2012 received a portion of the $1.8 million.
During fiscal year 2012, MMPA members earned $27.2 million in total premiums. These premiums are a combination of quality, volume, over-order premiums and a 13th milk check.
MMPA members received other cash payments in April 2012 of $3.3 million through retirement of the cooperative's 2003 equities. In September 2012, MMPA members received $2 million in cash payments in the form of a 13th milk check. With the current payment of $1.8 million, cash payments in the last 10 months total more than $7.1 million.
"The return of cash patronage refunds, premiums and allocated equities continues to occur as a result of successful operating results of MMPA," says Clay Galarneau, MMPA general manager. "The high quality of our milk supply and continuing growth of our milk production is an attractive combination that has
helped strengthen our financial position."
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.