Earlier this week, National Milk Producers Federation leadership unanimously endorsed a proposal to modernize the Federal Milk Marketing Order milk-pricing system.  The plan includes returns to the "higher of" Class I mover, discontinuing including barrel cheese in the protein component price formula.  It extends the current 30-day reporting limit to 45 days on forward-priced sales of Nonfat Dry Milk and dry whey to capture more export sales in the USDA product price reporting.  Additionally, the plan updates milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas.


The plan develops a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years, and updates dairy product manufacturing allowances contained in the USDA milk price formulas.  Any final proposal will be reviewed by the organization before it’s submitted to USDA to be considered for a federal order hearing.


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