STAND. COM. REP. NO. 2688

Honolulu, Hawaii

RE:    S.B. No. 2956

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2956, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MILK,"

begs leave to report as follows:

     The purpose of this measure is to ensure the availability of fresh milk for consumption in Hawaii.

     The bill seeks to accomplish this by:

     (1)  Ensuring that the remaining Hawaii dairy producers are paid a price commensurate with the quality of the milk they produce; and

     (2)  Appropriating funds to establish a strategic plan for the milk industry in Hawaii.

     The Department of Agriculture submitted testimony in support of this measure.  Meadow Gold Dairies submitted comments.

     Once ranked as one of the top three sectors of diversified agriculture, the local dairy industry has experienced a steady decline with production values decreasing from over $33,300,000 in 1988 to $18,300,000 in 2005.  This measure will help to ensure that one hundred per cent of the local producers' milk produced within their quota will be used for fluid consumption rather than for lower compensated purposes.  Your Committee finds that this measure will foster the continued operation of the two remaining local dairies and help to ensure that Hawaii consumers obtain fresher milk.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2956, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair