MMPA returns $1.6M to members
NOVI, MI -- The Michigan Milk Producers Association recently paid $1.6 million in cash patronage refunds to its dairy farmer member-owners. This cash allocation represents 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 2016 received a portion of the allocation.
MMPA members received other cash payments in April 2016 of $4 million through retirement of half of the cooperative’s 2007 equities. With the current payment of $1.6 million, cash payments in the last 10 months total over $5.6 million.
“The nearly $6 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. “The earnings generated by the cooperative demonstrates our commitment to returning value back to its dairy farmer member-owners.”
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.