While supply management is law north of the U.S. border, in this country cooperatives are self-imposing the practice in times of tight capacity like the current glut in the northeast. Farm Progress first reported that Land O’Lakes sent its eastern region members notice that a quota would be established, effective January 1.

The Land O’Lakes website shows that its board of directors currently has seven dairy regions represented, with one in California, three in the Upper Midwest, and three based in Pennsylvania, but also covering parts neighboring Mid-East states. Three of the 12 dairy division directorships are held in these eastern regions.

A base production value of September 2014 to August 2015 will be assigned to each member, and their production managed by the cooperative with any member producing over-quota milk charged the incremental costs to do so.

While Canada’s supply management system via quota remains intact, the E.U. let their version of supply management expire on April 1 of this year. The state of California remains in a quota system since the 1960s, giving quota-holders, representing about 60% of the state’s farms, additional revenue each month of about $1.50/cwt as distributed from a pool. That quota has not expanded for 20 years, but cooperatives have implemented quota at times within the state to manage supply.

Meetings are taking place in Pennsylvania to inform Land O’Lakes producers of the changes.