By Jamie Martin
The USDA has officially approved the modernization of the Federal Milk Marketing Order (FMMO), a major victory for the dairy industry. This announcement follows four years of efforts led by the National Milk Producers Federation (NMPF), ensuring a fairer milk pricing system.
Gregg Doud, president and CEO of NMPF, highlighted the importance of the decision. “Dairy farmers and cooperatives have done what they do best – lead their industry for the benefit of all,” he said.
Key reforms include -
- Returning to the “higher-of” Class I skim milk pricing formula
- Introducing an extended shelf-life adjustment for ESL products
- Updating Class III and IV manufacturing allowances
- Revising Class I differential values to reflect cost changes
- Adjusting skim milk composition factors (effective Dec. 1)
- Removing 500-pound barrel cheddar cheese from the pricing survey
The new pricing system, set to take effect on June 1, aligns closely with NMPF’s recommendations. The organization has conducted over 200 meetings to shape these policies.
Farmers and cooperatives can learn more through upcoming webinars and resources. Additionally, NMPF is advocating for further changes, including mandatory dairy manufacturing cost reporting, requiring congressional approval.
With these reforms, the dairy industry is set for a more stable and sustainable future.
Photo Credit: usda
Categories: National