Californians for Nutritious Milk Statement Regarding Mad About Milk's Fundamentally Flawed Report.

News Editors/Food Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--Aug. 9, 2000

The following is a statement from Californians for Nutritious Milk Executive Director Michael Boccadoro regarding Mad About Milk's recent report California's Alleged Calcium Advantage:

"Mad About Milk's most recent report is nothing more than repackaged misleading data.

"Mad About Milk's report inappropriately compares California fluid milk consumption figures with those of surrounding rural markets. This is a very misleading comparison since the demographics of these areas are very dissimilar to California's and one would expect to find different consumption patterns of largely rural areas than those in more urban markets such as California. In 1998, the last year for which per capita consumption data is available, California's annual per capita consumption of all fluid milk was about 23 gallons. During the same year, annual U.S. per capita consumption was about 24.3 gallons. Thus, the California per capita consumption is within 5% of the national average as it has been for the past 10 years.

"In addition, the report wrongly concludes that Californians drink less 1% and 2% varieties of milk because these types are more expensive than whole and skim milks. This is simply not true. These lower fat varieties (1% and 2%) milks not only cost less to produce, they are regularly sold for considerably less in supermarkets throughout California.

"Mad About Milk has again misrepresented California's retail milk prices as being the highest in the nation. The only thing about California milk that is the highest in the nation is its nutritional value. The most recent retail pricing data shows that California milk consumers have seen prices plummet 20-35 cents per gallon during the first half of 2000. When compared, California retail milk prices are on par with national averages."

                 June 2000 Average Retail Milk Prices

                  Whole      2%      1%     Skim
Calif. Average   $ 2.60  $ 2.55  $ 2.76   $ 2.52
 U.S. Average    $ 2.68  $ 2.49  $ 2.51   $ 2.49

Source: A.C. Nielsen Scantrack data as compiled by the California
Department of Food and Agriculture

"Mad About Milk also incorrectly claims that California's highest in the nation milk quality standards are in place to increase 'dairy industry profits.' How do they then explain why Phoenix dairy farmers, not California farmers, are paid more for their milk?"

               August 2000 Farm Milk Prices (per gallon)

            Phoenix Farm Price            California Farm Price
                  $ 1.23                          $ 1.21

Source: California Department of Food and Agriculture

Californians for Nutritious Milk is a coalition of leading health, nutrition and education professionals and dairy producers and processors working to ensure that Californians continue to drink the highest quality most nutritious milk in the nation. For more information visit www.californiamilk.com or call Mike Bowman at 916/441-3617.