July 10, 2020: Producer Price Differential

In 2000, Federal Milk Marketing Order (FMMO) Reform occurred and set up a class pricing system by which dairy producers would be paid based on class utilization of milk within the FMMO.  The system also set minimum prices for each classification based on historic actual values. The class pricing system was developed assuming that the value of Class I (fluid milk), Class II (ice cream and yogurt), Class III (cheese and whey) and Class IV (butter and powder) dairy products would decrease in value by class—with Class I having the highest value and Class IV the lowest. Read More