United States

Department of

Agriculture

Marketing and

Regulatory

Programs

Agricultural

Marketing

Service

Dairy Programs

Statistical

Bulletin

Number 1004

Federal Milk Order

Market Statistics

2003 Annual Summary
1

 PREFACE

 Federal milk marketing orders are established under the authority of the Agricultural Marketing Agreement Act of 

1937, as amended. The Secretary of Agriculture is authorized by this statute, under certain conditions and with 

producer approval, to issue milk marketing orders that require handlers to pay at least the minimum specified prices for 

milk purchased from producers. The complete orders are published in the U. S. Code of Federal Regulations, Parts 

1000 to 1199. 

 This is an annual summary of monthly Federal milk order statistical data. These data have been compiled from 

reports that handlers (milk processors) are required to file monthly with the market administrator who administers the 

respective Federal milk order. These reports show the volume of milk receipts from each source and quantity of milk 

used in each form. From these reports, data are compiled and totaled for each order by the market administrator. The 

order summary report is submitted to the Market Information Branch in Dairy Programs and is combined with the 

summary reports for the other orders. 

 The data in this summary is for 2003. Similar data for the period from 1947 through 2002 have been published in 46 

previous annual summaries. 

 Issued July 2004 

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of 

race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family 

status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for 

communication of program information (Braille, large print, audiotape, etc.) should contact the USDA’s TARGET 

center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building 

14th and Independence Avenue SW., Washington, DC, 20250-9410, or call (202) 720-5964 (voice and TDD). USDA 

is an equal opportunity provider and employer. 
2

TABLE OF CONTENTS 

Page 

Number 

I. General Information 

How Federal Milk Order Statistics Are Developed......................................................................................................... 5 

Brief Description of Federal Milk Order Terms .............................................................................................................. 6 

 

Table 1: Federal milk orders in effect on December 31, 2003, with number assigned 

 each order in the Code of Federal Regulations and date on which each order became effective ..................... 9 

Table 2: Measures of growth in Federal milk order markets, selected years, 1947-2003............................................... 11 

Table 3: Population of Federal milk order marketing areas as defined December 31, 2003, 

 total and by State, according to the 2000 United States Census and Census Update........................................ 12 

Federal Milk Order Marketing Area Map........................................................................................................................ 14 

Summary of Major Order Actions During 2003.............................................................................................................. 15 

II. Number of Handlers and Producers, and Quantities and Utilization of Milk Priced 

Summary of the quantities and utilization of milk priced................................................................................................ 17 

Table 4: Number of pool handlers, supply plants, and distributing plants under Federal milk orders, by order, 

 December 2003................................................................................................................................................. 18 

Table 5: Number of producers delivering milk to handlers regulated under Federal orders, by marketing area, 

 2003 .................................................................................................................................................................. 19 

Table 6: Receipts of producer milk by handlers regulated under Federal orders, by marketing area, 2003................... 20 

Table 7: Average daily delivery of milk per producer to handlers regulated under Federal orders, 

 by marketing area, 2003.................................................................................................................................... 21 

Table 8: Butterfat test of producer milk, by Federal milk order marketing area, 2003 .................................................. 22 

 

Table 9: Nonfat solids test of producer milk, by Federal milk order marketing area, 2003 ........................................... 23 

Table 10: Protein (true) test of producer milk, by Federal milk order marketing area, 2003 ......................................... 24 

Table 11: Other solids test of producer milk, by Federal milk order marketing area, 2003 ........................................... 25 

Table 12: Somatic cell count of producer milk, by Federal milk order marketing area, 2003........................................ 26 

Table 13: Utilization of producer milk in Class I products, by Federal milk order marketing area, 2003...................... 27 

Table 14: Class I utilization percentage of producer milk, by Federal milk order marketing area, 2003....................... 28 

 
3

 Page 

 Number 

Table 15: Butterfat test of producer milk used in Class I products by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 29 

Table 16: Nonfat solids test of producer milk used in Class I products, by Federal milk 

 order marketing area, 2003 ............................................................................................................................. 30 

Table 17: Utilization of producer milk in Class II products, by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 31 

Table 18: Class II utilization percentage of producer milk, by Federal milk order marketing area, 2003...................... 32 

Table 19: Butterfat test of producer milk used in Class II products, by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 33 

Table 20: Nonfat solids test of producer milk used in Class II products, by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 34 

Table 21: Utilization of producer milk in Class III products, by Federal milk order marketing area, 2003................... 35

 

Table 22: Class III utilization percentage of producer milk, by Federal milk order marketing area, 2003 .................... 36

 

Table 23: Butterfat test of producer milk used in Class III products, by Federal milk 

 order marketing area, 2003 ............................................................................................................................. 37 

Table 24: Protein (true) test of producer milk used in Class III products, by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 38 

Table 25: Other solids test of producer milk used in Class III products, by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 39 

Table 26: Utilization of producer milk in Class IV products, by Federal milk order marketing area, 2003................... 40 

 

Table 27: Class IV utilization percentage of producer milk, by Federal milk order marketing area, 2003 .................... 41 

 

Table 28: Butterfat test of producer milk used in Class IV products, by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 42 

Table 29: Nonfat solids test of producer milk used in Class IV products, by Federal milk order 

 marketing area, 2003 ...................................................................................................................................... 43 

III. Class and Producer Prices and Gross Values 

Summary of class and producer prices and gross values................................................................................................. 44 

 

Federal milk order price formulas for 2003..................................................................................................................... 45 

Table 30: NASS dairy product price averages used in Federal milk order price formulas, 2003................................... 46 

 

Table 31: Federal milk order Class I and Class II advanced prices and pricing factors, 2003 ....................................... 47 

 

 
4

 Page 

 Number 

Table 32: Federal milk order Class II, Class III, and Class IV milk and component prices, 2003 ................................. 48 

 

Table 33: Federal milk order principal pricing points, with Class I differentials ........................................................... 49 

Table 34: Class I skim milk price, by Federal milk order marketing area, 2003............................................................ 50 

Table 35: Class I butterfat price, by Federal milk order marketing area, 2003 .............................................................. 51 

Table 36: Class I milk price, by Federal milk order marketing area, 2003..................................................................... 52 

Table 37: Uniform skim milk price, by Federal milk order marketing area, 2003 ......................................................... 53 

Table 38: Uniform butterfat price, by Federal milk order marketing area, 2003............................................................ 54 

Table 39: Producer price differential, by Federal milk order marketing area, 2003....................................................... 55 

Table 40: Uniform milk price, by Federal milk order marketing area, 2003.................................................................. 56 

Table 41: Value provided by the portions of the uniform milk price at test, by 

 Federal milk order marketing area, 2003............................. .................................................................. 57 

Table 42: Uniform milk price at test and gross value of producer milk receipts for all 

 producers and per producer, by Federal milk order marketing area, 2003 ..................................................... 58 

IV. Fluid Milk Product Sales 

Summary of fluid milk product sales............................................................................................................................... 59 

Table 43: Summary of packaged sales of fluid milk products in Federal milk order marketing areas, 

 by months, 2003............................................................................................................................................. 60 

Table 44: Sales of fluid milk products in Federal milk order marketing areas, by product, by order, 2003................... 61

Table 45: Packaged dispositions of Class I milk products by handlers regulated under Federal 

 milk orders, by product, by order, 2003.......................................................................................................... 64 

V. Milk Used to Produce Manufactured Dairy Products 

Summary of milk used to produce manufactured dairy products .................................................................................... 67 

Table 46: Milk, skim milk, and cream used to produce Class II products, by handlers 

 regulated under Federal milk orders, by product grouping, by order, 2003.................................................... 68 

Table 47: Milk, skim milk, and cream used to produce Class III products, by handlers 

 regulated under Federal milk orders, by product grouping, by order, 2003.................................................... 69 

Table 48: Milk, skim milk, and cream used to produce Class IV products and “Other Uses,” 

 by handlers regulated under Federal milk orders, by product grouping, 

 by order, 2003................................................................................................................................................. 70 

VI. Errata to 2002 Annual Summary of Federal Milk Order Market Statistics.......................................... 71 
5

HOW FEDERAL MILK ORDER STATISTICS ARE DEVELOPED 

Introduction. 

The statistical data generated through the administration of the Federal milk order program is recognized 

widely as one of the benefits of this program. These data provide comprehensive and accurate information 

on milk supplies, utilization, and sales, as well as class prices established under the orders and prices paid 

to dairy farmers (producers). The sources of this data are monthly reports that are required to be filed by 

milk processors (handlers) subject to the provisions of the various milk orders. The local market 

administrator uses these reports to administer the provisions of the order and to assemble a series of 

statistical reports that summarize individual handler operations for the order, which are submitted to the 

Market Information Branch in Dairy Programs in the Agricultural Marketing Service. 

Why Are Figures Collected? 

Each month, regulated handlers (fluid milk processors subject to the provisions of a Federal milk order) are 

required to file a report of milk receipts and utilization (R & U Report) with the order’s market 

administrator (MA). The MA is the Federal official in each market who, with the assistance of a staff, 

administers the terms of the Federal order. The R & U report shows, for the month, the quantities of milk 

and milk products received at the handler’s plant from each source, either directly from farms or from other 

plants, and how this milk was used in the plant. All major fluid milk products and manufactured milk 

products are listed on the report form, and handlers are required to specify the volume and butterfat content, 

and in some cases, other milk components, of all milk used in each product. On the basis of these reports, 

the MA determines the amount of milk that handlers use in each price class, makes computations of each 

handler’s pool obligation, and calculates the minimum price the handler must pay producers. The MA also 

receives producer payroll reports from regulated handlers which are used to verify proper payments to 

producers and reports from nonpool handlers which are used to determine regulatory status. 

Are Reported Figures Verified? 

The local market administrator maintains a staff of highly-trained auditors who, on a monthly basis, review 

at each handler’s location, the books and records of plant operations for a previous time period. The 

auditors examine these records to determine whether the milk actually was received and used as reported, 

and therefore, whether the handler’s pool obligation was computed correctly. Reporting errors are 

corrected; if necessary, pool obligations are revised. Auditors also determine whether required payments 

were made to producers. As a result, all data reported by handlers is subject to audit. 

How Are Summary Statistics Developed? 

After the handler pool obligations have been determined, the local market administrator generates a series 

of reports that compiles order totals from the individual handler reports and submits these to the Market 

Information Branch (MIB) in the Dairy Programs headquarters office. The MIB compiles program-wide 

totals from the individual order reports and disseminates this information in a series of monthly and annual 

releases on the Internet, in the weekly “Dairy Market News Report,” and in its own publications. Since 

milk marketing order statistics are based on reports filed by the population of possible reporting firms and 

not a sample, these statistics are comprehensive. Also, since the individual firm reports are subject to audit 

and verification, these statistics are accurate and reliable. Federal milk orders use terms that are 

specifically defined in order provisions. It is recommended that users of Federal milk order statistics 

become familiar with these terms, some of which are described beginning on page 6 of this publication. 
6

BRIEF DESCRIPTION OF FEDERAL MILK ORDER TERMS 

Following is a brief description of some terms used in Federal milk order statistics. For a detailed 

description of Federal milk order terms, see the specific order provisions in the Code of Federal 

Regulations. 

Federal Milk Marketing Order. 

A Federal milk marketing order is a regulation issued by the Secretary of Agriculture. Its purpose is to 

stabilize markets by placing certain requirements on the handling of milk in the area it covers. It is 

established under the authority of the Agricultural Marketing Agreement Act of 1937, as amended. It 

requires milk handlers in a marketing area to pay not less than certain minimum class prices established 

according to how the milk is utilized. These prices are established under the order after a public hearing at 

which evidence is received on the supply and demand conditions for milk in the market. A milk order, 

including the pricing provisions and all other provisions, becomes effective only after approval by dairy 

farmers. It requires that payments for milk be pooled and paid to individual farmers or cooperative 

associations of farmers on the basis of a uniform or average price. 

Marketing Area. 

A marketing area is an area designated in a Federal milk order’s provisions within which the handling of 

milk is regulated by the order. Generally, the size of the marketing area is determined by the sales territory 

of competing handlers. The recent consolidation of orders also looked at overlapping areas of milk supply, 

the number of handlers within the area, natural boundaries, cooperative association service areas, common 

regulatory provisions, and milk utilization in common dairy products. 

Producer. 

A producer is usually any dairy farmer who sells milk to a pool handler. Producers must produce milk in 

compliance with Grade A inspection requirements, and their milk must be either received at a pool plant or 

diverted to a nonpool plant for the account of a pool handler. Producer-handlers are not producers. 

Handler.

A handler is a person--an individual, partnership, corporation, association, or other business unit, that is 

subject to the provisions of an order. A handler can be an operator of a plant that is approved by a duly 

constituted regulatory agency for the handling of Grade A milk. A handler also can be a milk distributor or 

a broker. A cooperative association that does not operate a plant can be a handler. 

 Pool Handler.

 A pool handler is a handler that is subject in full to the provisions of the order, A pool handler can be 

 an operator of a plant that meets the minimum performance standards included in each order, a pool 

 plant. Such plants include distributing plants, plants primarily engaged in processing packaged fluid 

 milk products, and supply plants, plants primarily engaged in producing manufactured dairy products. 

 A cooperative association that does not operate a plant can be a pool handler. A milk distributor or 

 broker cannot be a pool handler. 

 Nonpool Handler.

 A nonpool handler is an operator of a plant that, while it receives, processes, or distributes milk in the 

 marketing area, does not meet the minimum performance standards of the order, a nonpool plant. 

 Nonpool plants include: a plant fully regulated under another Federal order; a producer-handler plant, 

 generally a person that operates both a dairy farm and a distributing plant; a partially regulated 

 distributing plant; an unregulated supply plant; or, an exempt plant, a plant operated by a governmental 
7

 agency or a duly accredited college or university, for charitable purposes, or from which less than 

 150,000 pounds per month are distributed. Some nonpool handlers file monthly reports with the local 

 market administer that basically are used to determine regulatory status, but also provide some market 

 statistics. 

Receipts of Milk. 

Federal milk order statistics include volumes of milk received by handlers regulated under each of the 

Federal orders. Receipts of milk principally come from producers, but also may include other sources. The 

volume of milk that is reported as received by handlers from producers includes all such milk regardless of 

where it may be sold. Milk identified as that received from producers for a given market may come 

directly from nearby producers or from producers associated with a supply plant which, although located 

several hundred miles from the marketing area, is pooled on the market. Producer milk also may include 

milk that is diverted by a pool plant operator to another pool plant or to a nonpool plant. Other source 

receipts can include milk and dairy products transferred or diverted from plants regulated under other 

Federal orders or received from unregulated sources such as unregulated supply plants or producerhandlers. 

Classes of Milk.

There are four classes of milk utilization defined in Federal orders. Class I use is milk disposed as a fluid 

milk product, milk products intended to be used as a beverage. Class I uses include plain and flavored 

whole milk, fat reduced milks, and eggnog. Class II use includes milk used to produce fluid cream and 

other cream products, cottage cheese, frozen desserts, and other food products. Class III use includes milk 

used to produce hard cheeses and cream cheese. Class IV includes milk used to produce butter and any 

milk product in dried form. 

Pricing System.

The Federal milk order program uses product price formulas to determine milk component values which 

are combined to calculate monthly class prices. See page 45 for the applicable class price formulas. The 

factors in the formulas are dairy product prices, which change monthly, and make allowances and product 

yields, which are set in the formulas. The dairy product prices are those collected weekly by the National 

Agricultural Statistics Service in USDA. The most recent four or five weeks of prices are weighted by the 

applicable weekly volumes to determine a monthly average. Butter, Cheddar cheese and dry whey prices 

are used to compute values for butterfat, protein, and other solids, respectively. The protein and other 

solids prices are used to calculate the Class III skim milk price which, combined with the butterfat price, 

determines the Class III milk price. Butter and nonfat dry milk prices are used to compute values for 

butterfat and nonfat solids, respectively. The nonfat solids price is used to calculate the Class IV skim milk 

price which, combined with the butterfat price, determines the Class IV milk price. The Class II price is 

determined by the Class II skim milk price, which is computed in advance (see Class I price description 

below), and the Class II butterfat price, the butterfat price plus $0.007. The Class II, III, and IV prices are 

the same in each Federal milk order and are announced by the 5th of the following month. 

Class I prices vary across the Federal milk order system and are announced in advance by the 23rd of the 

preceding month. The Class I skim milk price is the higher of the advanced Class III or IV skim milk 

pricing factors plus a differential specific to each pricing point in the country. The Class I butterfat price is 

the advanced butterfat pricing factor plus the specific Class I differential divided by 100. The advanced 

skim milk pricing factors use the same product price formulas as the Class III and IV prices except that the 

product prices are for the most recent two weeks. The Class II skim milk price is the Class IV advanced 

skim milk pricing factor plus a differential of $0.70 and also is announced by the 23rd of the preceding 

month. 
8

Producer Prices.

The Federal milk order program has two systems for paying producers, the component pricing system and 

the skim milk/butterfat pricing system. In the component pricing system, which is used in seven orders, 

producer prices are based on the value of components, butterfat, protein, and other solids, in the milk they 

market and the value of the producer price differential. The component values are those computed for the 

Class III price. The producer price differential, basically, is the weighted average value of the effective 

Class I and II differentials; the weights being the proportional volumes of milk used in Class I and II. 

Producers receive a price for each pound of milk component marketed and the producer price differential 

for each hundredweight of milk marketed. In four of the seven orders, producer prices are adjusted for milk 

quality as measured by the somatic cell count of the milk. For informational purposes, a statistical uniform 

price is calculated which equals the Class III price plus the producer price differential. 

In the skim milk/butterfat pricing system, which is used in four orders, producer prices are based on the 

uniform skim milk price and the uniform butterfat price. The uniform skim milk and butterfat prices are 

the weighted average values of each class’s skim milk and butterfat prices. The weights are the volumes of 

skim milk and butterfat used in each class. Producers receive the uniform skim milk price for each 

hundredweight of skim milk marketed and the uniform butterfat price for each pound of butterfat marketed. 

The uniform milk price under this pricing system is the weighted average value of the uniform skim milk 

and butterfat prices in 3.5% butterfat content milk. 

Sales of Fluid Milk Products.

In Federal milk order market statistics, an important distinction is made between sales of packaged fluid 

milk products in a marketing area (in-area) and packaged disposition of Class I products by handlers 

regulated in a market. The latter are total dispositions under an order by fully regulated handlers only. 

Dispositions can occur both inside and outside the defined marketing area of that order and can include 

both route sales and transfers to nonpool or unregulated handlers. A route sale is a delivery to a retail or 

wholesale outlet (except a plant), either directly or through a distribution facility. A transfer is a sale 

(delivery) to another plant. Besides receipts from producers, these dispositions also may include receipts 

from other Federal order plants and/or receipts from other sources. 

In-area sales includes route sales in each of the marketing areas from all sources; handlers regulated under 

the respective order, handlers regulated under other Federal orders, partially regulated handlers, exempt 

handlers, and producer-handlers. These data are useful in appraising trends in the sales of fluid milk 

products and in the per capita consumption of fluid milk products in the Federal order marketing area. 
CFR 

Chapter Date

Federal Milk Order 7 Part Effective

Number

Appalachian................................................................. 1005 1/1/2000

 Merger of: Carolina; 9-1-1990 and Louisville-Lexington-

 Evansville, minus 1 Kentucky county -- 3-1-1962; and,

 Addition of: former Tennessee Valley marketing area, 3 unregulated

 counties in Indiana, and 18 unregulated counties in Kentucky

Arizona-Las Vegas......................................................... 1131 1/1/2000

 Central Arizona -- 12-1-1955

 Addition of: 1 Nevada county from Great Basin and 8 unregulated

 counties in Arizona

Central......................................................................... 1032 1/1/2000

 Merger of: Central Illinois; 1-1-1967, Eastern Colorado -- 12-1-1965.

 Eastern South Dakota -- 5-1-1965, Greater Kansas City -- 9-1-1966, 

 Iowa -- 5-1-1977, Nebraska-Western Iowa, minus 11 Nebraska 

 counties -- 5-1-1968, Southern Illinois-Eastern Missouri, minus

 6 Missouri counties -- 5-1-1988, Southwest Plains, minus 11

 Arkansas counties and 22 Missouri counties -- 5-1-1987. and

 Western Colorado -- 12-1-1958; and

 Addition of: 10 unregulated counties in Colorado, 14 unregulated

 counties in Illinois, 7 unregulated counties in Iowa, 23 unregulated

 counties in Kansas, 8 unregulated counties in Missouri, and

 8 unregulated counties in Nebraska.

Florida......................................................................... 1006 1/1/2000

 Merger of: Southeastern Florida; 9-1-1957, Tampa Bay -- 1-1-1966,

 Upper Florida--1-1-1967

Mideast....................................................................... 1033 1/1/2000

 Merger of: Eastern Ohio-Western Pennsylvania -- 5-1-1969,

 Indiana -- 1-1-1969, Ohio Valley -- 8-1-1970, and Southern

 Michigan -- 4-1-1973; and,

 Addition of: 9 Michigan counties from Michigan Upper Peninsula,

 6 unregulated counties in Indiana, 2 unregulated counties in

 Michigan, and 3 unregulated counties in Ohio.

Northeast..................................................................... 1001 1/1/2000

 Merger of: Middle Atlantic -- 8-1-1970, New England -- 4-1-1976,

 and New York-New Jersey -- 8-1-1957; and 

 Addition of: 3 unregulated counties in Massachusetts, 2 unregulated

 counties in New Hampshire, 6 unregulated counties in New York,

 and 11 unregulated counties in Vermont.

CONTINUED

Table 1--Federal Milk Orders in Effect on December 31, 2003, with Number Assigned Each Order in Code of 

Federal Regulations and Date on Which Each Order Became Effective

9
CFR 

Chapter Date

Federal Milk Order 7 Part Effective

Number

Pacific Northeast.......................................................... 1124 1/1/2000

 Pacific Northwest -- 2-1-1989 and,

 Addition of: 1 unregulated county in Oregon

1007 1/1/2000

Southeast....................................................................

 Southeast -- 7-1-1995; and

 Addition of: 11 Arkansas counties from Southwest Plains

 1 Kentucky county from Louisville-Lexington-Evansville,

 22 Missouri counties from Southwest Plains, 6 Missouri counties 

 from Southern Illinois-Eastern Missouri, 20 unregulated counties 

 in Kentucky, and 15 unregulated counties in Missouri

Southwest.................................................................... 1126 1/1/2000

 Merger of: New Mexico-West Texas -- 12-1-1991, and

 Texas -- 7-1-1975; and

 Addition of: 49 unregulated counties in Texas

Western...................................................................... 1135 1/1/2000

 Merger of: Great Basin minus 1 Nevada county -- 4-1-1988, and

 Southwestern Idaho-Eastern Oregon -- 7-1-1981

Upper Midwest............................................................. 1030 1/1/2000

 Merger of: Chicago Regional -- 7-1-1968, and Upper Midwest -- 6-1-1976

 Addition of: 6 Michigan counties and 3 Wisconsin counties from

 Michigan Upper Peninsula -- 12-1-1958 and 7 unregulated

 counties in Wisconsin

Table 1--Federal Milk Orders in Effect on December 31, 2003, with Number Assigned Each Order 

in Code of Federal Regulations and Date on Which Each Order Became Effective -Con.

10
Population Percentage Dail

Number of Federal Number Receipts Producer of deliver

Year of milk of Number of of milk used producer of mi

markets marketing handlers producers producer in Class I milk used per

1/ areas 1/ 2/ milk 3/ in Class I Class I Blend Fluid All produ

grade milk 

Number 1,000 Percent Poun

1947 29 --- 991 135,830 14,980 9,808 65.5 4.65 4.34 --- 21 1950 39 --- 1,101 156,584 18,660 11,000 58.9 4.51 3.93 41 25 1955 63 46,963 1,483 188,611 28,948 18,032 62.3 4.67 4.08 51 32 1960 80 88,818 2,259 189,816 44,812 28,758 64.2 4.88 4.47 64 43 1965 73 102,351 1,891 158,077 54,444 34,561 63.5 4.93 4.31 70 48 1970 62 125,721 1,588 143,411 65,104 40,063 61.5 6.74 5.95 79 59 1975 56 150,666 1,315 123,855 69,249 40,106 57.9 9.36 8.64 78 63 1980 47 164,908 1,091 117,490 83,998 41,034 48.9 13.77 12.86 80 67 1985 44 176,440 884 116,765 97,762 42,201 43.2 13.88 12.61 80 70 21986 44 177,992 849 112,322 98,791 42,725 43.2 13.60 12.38 80 71 21987 43 180,374 797 105,882 98,182 42,876 43.7 13.90 12.51 80 71 21988 42 184,180 776 104,141 100,066 43,141 43.1 13.42 12.14 79 71 21989 41 185,919 748 100,291 95,871 43,367 45.2 14.51 13.30 75 68 21990 42 195,841 753 100,397 102,396 43,783 42.8 15.55 13.78 77 70 21991 40 198,409 722 100,267 103,252 45,033 43.6 13.30 12.11 76 71 21992 40 200,530 698 97,803 107,947 44,914 41.6 14.57 13.12 77 73 31993 38 199,604 675 92,934 103,979 44,805 43.1 14.19 12.89 73 69 31994 38 201,561 629 91,397 107,811 44,866 41.6 14.75 13.16 75 71 31995 33 207,548 571 88,717 108,548 45,004 41.5 14.19 12.79 75 71 31996 32 209,599 570 82,947 104,501 45,479 43.5 16.19 14.64 72 69 31997 31 208,379 570 78,422 105,224 44,917 42.7 14.36 13.10 71 69 31998 31 210,484 522 72,402 99,223 44,968 45.3 16.14 14.92 66 64 31999 31 212,118 487 69,008 104,479 45,216 43.3 16.24 14.09 67 65 42000 11 228,899 346 69,590 116,920 45,989 39.3 14.24 12.11 72 70 42001 11 231,487 350 66,423 120,223 45,887 38.2 16.96 14.90 75 73 42002 11 234,256 338 63,856 125,546 46,043 36.7 13.69 11.91 77 76 52003 11 236,180 331 58,110 110,581 45,843 41.5 14.10 12.12 67 65 5

1/ End of year. The number of markets peaked at 83 in 1962. The number of handlers peaked at 2,314 in 1961.

Number Million pounds Dollar per cwt. Percent

4/ Based on blend (uniform) price adjusted for the butterfat content, and in later years, other milk components of producer milk.

Receipts as

Table 2--Measures of Growth up Federal Milk Order Markets, Selected Years, 1947-2003

2/ Average for year. The number of producers peaked at 192,947 in 1961.3/ Beginning in 1989, due to disadvantageous price situations in some markets, handlers elected not to pool milk that normally would have been

dealers

Percentage of

milk sold to

plants and

associated with the order. This has reduced, sometimes substantially, the volume of producer milk receipts reported for some markets.

Prices at 3.5% 

butterfat

content 2/

11
12

Table 3—Population of Federal Milk Order Marketing Areas as Defined December 31, 2003, Total and by 

State, According to the 2000 United States Census 1/ 

Federal Milk Order 

Marketing Area 

Order 

Number 

States Population Census Update 2/ 

 

Appalachian 005 Total 18,436,178 19,084,034

 Georgia 294,788 312,741 

 Indiana 791,872 806,838 

 Kentucky 2,812,978 2,865,862 

 North Carolina 8,049,313 8,407,507 

 South Carolina 4,012,012 4,147,217 

 Tennessee 2,107,138 2,163,609 

 Virginia 277,768 289,851 

 West Virginia 90,309 90,408 

 

Arizona-Las Vegas 131 Total 6,506,397 7,123,646

 Arizona 5,130,632 5,580,588 

 Nevada 1,375,765 1,543,058 

 

Central 032 Total 22,388,105 22,911,548

 Colorado 4,110,995 4,349,433 

 Illinois 3,688,820 3,758,539 

 Iowa 2,847,413 2,864,782 

 Kansas 2,688,418 2,723,636 

 Minnesota 46,877 48,208 

 Missouri 3,498,817 3,567,044 

 Nebraska 1,586,359 1,612,375 

 Oklahoma 3,450,654 3,511,386 

 South Dakota 402,912 407,948 

 Wisconsin 66,840 68,197 

 

Florida 006 Total 15,359,126 16,355,933

 Florida 15,359,126 16,355,933 

 

Mideast 033 Total 31,379,357 31,735,577

 Indiana 5,288,613 5,388,568 

 Kentucky 685,009 697,887 

 Michigan 9,808,800 9,948,085 

 Ohio 11,118,122 11,199,284 

 Pennsylvania 3,105,740 3,127,170 

 West Virginia 1,373,073 1,374,583 

 

Northeast 001 Total 51,288,677 52,299,522

 Connecticut 3,405,565 3,483,212 

 Delaware 783,600 817,530 

 District of Columbia 572,059 563,364 

 Maryland 5,191,710 5,399,898 

 Massachusetts 6,349,097 6,433,540 

 New Hampshire 1,235,786 1,287,689 

 New Jersey 8,414,350 8,638,172 

 New York 16,275,023 16,458,931 

 Pennsylvania 5,589,144 5,627,709 

 Rhode Island 1,048,319 1,076,204 

 Vermont 608,827 619,116 

 Virginia 1,815,197 1,894,158 

 

 Continued 

 
13

Table 3—Population of Federal Milk Order Marketing Areas as Defined December 31, 2003, Total and by State, According to 

 2000 United States Census 1/ -Continued 

Federal Milk Order 

Marketing Area 

Order 

Number 

States Population Census Update 2/ 

 

 

Pacific Northwest 124 Total 9,433,132 9,816,947

 Idaho 213,268 225,190 

 Washington 3,325,743 3,460,103 

 Oregon 5,894,121 6,131,654 

 

Southeast 007 Total 28,482,597 29,307,487

 Alabama 4,447,100 4,500,910 

 Arkansas 2,673,400 2,725,799 

 Florida 623,252 663,701 

 Georgia 7,891,665 8,372,267 

 Kentucky 543,782 554,005 

 Louisiana 4,468,976 4,496,237 

 Mississippi 2,844,658 2,881,354 

 Missouri 1,407,619 1,435,068 

 Tennessee 3,582,145 3,678,146 

 

Southwest 126 Total 22,748,535 24,074,226

 Colorado 77,669 82,174 

 New Mexico 1,819,046 1,874,527 

 Texas 20,851,820 22,117,525 

 

Western 135 Total 3,395,751 3,580,179

 Idaho 981,200 1,036,049 

 Nevada 58,637 65,767 

 Oregon 88,430 92,003 

 Utah 2,233,169 2,351,527 

 Wyoming 34,315 34,833 

 

Upper Midwest 030 Total 19,480,685 19,891,056

 Illinois 8,730,473 8,895,479 

 Iowa 78,911 79,392 

 Michigan 129,644 131,485 

 Minnesota 4,872,602 5,010,984 

 North Dakota 294,809 290,976 

 South Dakota 77,411 78,379 

 Wisconsin 5,296,835 5,404,361 

 

 All Areas Combined Total 228,898,540 236,180,156 

 

 1/ These figures are the population in the counties, parishes, independent cities, and local subdivisions of the States listed that 

make up the marketing area. The source of these figures is the 2000 Population Census conducted by the Bureau of the Census, 

U.S. Department of Commerce. 

2/ These figures are estimated based on the statewide percent changes in population between April 1, 2000 and July 1, 2003. 

These updates are best used as an estimate of population for the year and should not be compared to previous updates to 

measure change overtime. 

15

SUMMARY OF MAJOR ORDER ACTIONS DURING 2003 

JANUARY

Pacific Northwest – January 1 (67 FR 69668, 11/19/02.) This interim final rule amends certain pooling 

provisions of the Pacific Northwest Federal milk order on an interim basis. 

This interim order implements amendments to the pool plant provisions which establish a cooperative 

manufacturing plant provision and a procedure for “system pooling” by cooperative manufacturing plants. 

For the producer milk provisions, this interim order implements amendments that establish a standard of at 

least 3 days’ milk production for the number of days during the month that the milk of a producer needs to 

be delivered to a pool plant ( a “touch-base standard) in order for the rest of the milk of that producer to be 

eligible to be diverted to nonpool plants, provides authority to the Market Administrator to adjust the 

“touch-base” standard, and establishes a year-round diversion limit of 80 percent of total receipts for pool 

plants. 

MARCH

Central – March 1 (68 FR 7070, 2/12/03.) This interim final rule amends certain pooling provisions of the 

Central Federal milk order on an interim basis. 

This interim order implements amendments to the pool plant provisions which establish lower but yearround supply plant performance standards; will not consider the volume of milk shipments to distributing 

plants regulated by another Federal milk order as a qualifying shipment for the Central order; exclude from 

receipts diverted milk made by a pool plant to another pool plant in determining pool plant diversion limits; 

and establish a “net shipments” provision for milk deliveries to distributing plants. 

For the producer milk provisions, this interim order implements amendments that: establish higher yearround diversion limits; will base diversion limits for supply plants on deliveries to Central order 

distributing plants; and eliminate the ability to simultaneously pool milk on the Central milk order and a 

State-operated milk order that has marketwide pooling. 

APRIL

Northeast and Other Marketing Areas – April 1 (68 FR 7063, 2/12/03.) This final rule implements revised 

product-price formulas for establishing Class III and Class IV milk prices. The formulas are applicable to 

all Federal milk marketing orders. The revised formulas can be found at Price Formulas – 2003. 

SEPTEMBER

Upper Midwest -- September 1 (68 FR 50686, 8/22/03.) This final rule adopts, without change, an interim 

final rule concerning pooling provisions of the Upper Midwest Federal milk order. Specifically, this final 

rule continues to prohibit the ability to simultaneously pool the same milk on the Upper Midwest Federal 

Milk Order and a State-operated milk order that has market-wide pooling. Additionally, the final rule 

limits the amount of milk that can be diverted to nonpool plants from pool distributing plants regulated 

under the order. 
16

DECEMBER

Central – December 1 (68 FR 66697, 11/28/03.) This final rule adopts, without change, an interim final rule 

concerning pooling provisions of the Central Federal milk order. Specifically, this final rule continues to 

prohibit the ability to simultaneously pool milk on the Central milk order when the same milk is already 

pooled on a state-operated milk order that has marketwide pooling. This rule also continues provisions 

that: establish lower but year-round supply plant performance standards; do not consider the volume of 

milk shipments to distributing plants regulated by another Federal milk order as a qualifying shipment on 

the Central order; exclude from receipts diverted milk made by a pool plant to another pool plant in 

determining pool plant diversion limits; and establish a “net shipments” provision for milk deliveries to 

distributing plants. 
17

SUMMARY OF THE QUANTITIES AND UTILIZATION OF MILK PRICED 

During 2003, there were 331 handlers regulated under the 11 Federal milk orders. These handlers 

operated 291 distributing (fluid milk processing) plants and 104 supply (manufacturing) plants. The 

Northeast order had the largest number of regulated handlers (65) and distributing plants (64). The 

Upper Midwest order had the most supply plants (57). 

An average of 58,110 producers (dairy farmers) marketed milk under Federal milk orders in 2003. On 

a monthly basis, the number of producers peaked at 62,218 in February, and was lowest in October 

(52,325). There was an average of 16,114 producers on the Northeast order, 13,308 producers in the 

Upper Midwest order, and only 106 producers on the Arizona-Las Vegas order. 

During 2003, about 111 billion pounds of milk was marketed by dairy farmers under the Federal milk 

order program, about 11.9 percent lower than in 2002. (See the information below concerning notpooled milk.) This volume of milk accounted for about 65 percent of all the milk marketed in the 

United States and about 67 percent of the fluid grade (Grade A) milk marketings. The average 

butterfat test of producer milk receipts was 3.67 percent, and ranged from 3.54 percent in August to 

3.78 percent in December. On a monthly basis, producer milk receipts peaked in May at 11.1 billion 

pounds, and were lowest in September (6.8 billion pounds). Over 24 billion pounds of milk were 

marketed under the Northeast order, just 2.8 billion pounds under the Florida order. The average 

delivery of milk per producer during 2003 was 5,178 pounds, and ranged from 3,336 pounds in the 

Upper Midwest order to 79,400 pounds in the Arizona-Las Vegas order. 

Nearly 46 billion pounds of producer milk receipts were disposed as Class I (fluid milk) products in 

2003, 41.5 percent of total producer milk marketings, and 0.4 percent lower than in 2002. The 

butterfat content of producer milk used in Class I averaged 2.01 percent. On a monthly basis, the 

volume of Class I producer milk peaked in January at 4.1 billion pounds, and was the lowest in June 

(3.5 billion pounds). Relative to total producer milk marketings, Class I utilization peaked in 

September. The order with the largest volume of Class I producer milk was Northeast (10.7 billion 

pounds), over 63 percent more than the next largest volume (Mideast). On an individual order basis, 

the average Class I utilization percentage in 2003 ranged from 85.2 in the Florida order to 24.3 in the 

Western order. 

Slightly more than 12 percent (13 billion pounds) of total producer milk marketings were used to 

produce Class II products (cream products, cottage cheese, and frozen desserts) in 2003. The butterfat 

test of producer milk used in Class II averaged 7.83 percent. The Northeast order had the largest 

volume of Class II producer milk (4.5 billion pounds). Class III products (hard cheeses and cream 

cheese) accounted for more than 39 billion pounds of producer milk, 35.6 percent of total producer 

milk marketings. The butterfat test of producer milk used in Class III averaged 3.72 percent. The 

Upper Midwest order had the largest volume of Class III producer milk (10.6 billion pounds). Nearly 

12 billion pounds of producer milk were used to produce Class IV products (butter and dried milk 

products). The butterfat test of producer milk used in Class IV averaged 5.21 percent. The Pacific 

Northwest order had the largest volume of Class IV producer milk (2.2 billion pounds). 

An estimated 14.9 billion pounds of producer milk that normally would have been marketed under 

Federal orders in 2003 was not pooled due to the relationship between the uniform and lower class 

prices in some orders in some months. Not pooling due to price occurred in nine orders; Appalachian, 

Arizona-Las Vegas, Central, Mideast, Pacific Northwest, Southeast, Southwest, Western, and Upper 

Midwest. Nearly 92 percent of not-pooled producer milk would have been used to produce Class III 

products. The comparability of any statistic based on total producer milk receipts was affected by this 

estimated volume of not-pooled milk. 
Federal Milk Order Order Pool Handlers Supply Distributing

Marketing Area Number 1/ Plants 2/ Plants 3/

Northeast 001 65 11 64

Appalachian 005 38 3 24

Southeast 007 38 3 32

Florida 006 15 0 12

Mideast 033 33 7 45

Upper Midwest 030 60 57 30

Central 032 28 11 32

Southwest 126 16 4 21

Arizona-Las Vegas 131 5 1 3

Western 135 16 0 12

Pacific Northwest 124 17 7 16

All Markets Combined 331 104 291

2/ Plants primarily engaged in producing manufactured dairy products. Includes

cooperative manufacturing plants per section XXXX.7(d).

3/ Plants primarily engaged in processing or packaging fluid milk products.

Table 4--Number of Pool Handlers, Supply Plants, and Distributing Plants Under

 Federal Milk Orders, by Order, December 2003

1/ See page 6 for definition of the term "handler". Includes proprietary bulk tank

handlers per section 1135.11.

18
Northeast 001 16,376 16,306 16,208 16,193 16,145 16,135 16,175 16,157 16,113 15,911 

Appalachian 005 3,919 3,967 3,866 3,665 3,725 3,516 3,554 3,554 3,746 3,465 Southeast 007 4,476 4,456 4,321 4,309 4,267 4,364 4,399 4,204 4,279 4,213 Florida 006 313 247 273 292 300 302 300 312 308 309 Mideast 033 10,547 10,505 10,470 10,357 10,312 10,253 9,385 10,724 10,601 10,443 Upper Midwest 030 14,963 14,994 15,912 15,621 15,602 15,553 9,689 9,425 8,874 9,210 Central 032 9,046 8,976 8,098 8,005 7,990 7,748 7,759 7,652 6,875 6,624 Southwest 126 760 987 984 955 959 948 688 767 777 821 Arizona-Las Vegas 131 107 108 104 103 107 106 106 107 106 106 Western 135 770 754 757 837 878 858 708 551 561 527 Pacific Northwest 124 920 918 909 912 909 903 691 697 705 693 All Markets Combined 62,197 62,218 61,902 61,249 61,194 60,686 53,454 54,150 52,945 52,322 

Table 5--Number of Producers Delivering Milk to Handlers Regulated Under Federal Orders, by Marketing Area, 2003

AUG SEP OCT 

Federal Milk Order Marketing Area Order Number JAN JUN JUL FEB MAR APR MAY
Northeast 001 2,058 1,901 2,150 2,109 2,177 2,002 2,017 1,943 1,882 1,923 

Appalachian 2/ 005 578 491 566 552 551 546 481 481 482 527 Southeast 3/ 007 664 573 627 636 625 567 551 482 538 595 Florida 006 256 231 253 269 262 241 226 212 196 214 Mideast 4/ 033 1,463 1,388 1,457 1,473 1,533 1,430 1,018 1,008 1,006 1,080 Upper Midwest 5/ 030 1,846 1,729 1,937 1,863 1,937 1,933 660 644 644 657 Central 5/ 032 1,677 1,595 1,487 1,463 1,479 1,406 760 653 711 782 Southwest 6/ 126 839 822 943 933 953 885 595 559 531 558 Arizona-Las Vegas 7/ 131 272 257 279 280 283 262 244 223 222 235 Western 8/ 135 508 465 443 564 640 605 176 184 168 175 Pacific Northwest 9/ 124 620 565 644 626 642 620 411 415 372 377 All Markets Combined 10,781 10,017 10,786 10,768 11,081 10,498 7,140 6,806 6,752 7,122 9/ Handlers in this marketing area elected not to pool milk in July-November due to disadvantageous intraorder class and uniform price relationships.

Million Pounds

Table 6--Receipts of Producer Milk by Handlers Regulated Under Federal Orders, by Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL 

AUG SEP OCT 

8/ Handlers in this marketing area elected not to pool milk in January, March, April, and July-December due to disadvantageous intraorder class and uniform price relationships.3/ Handlers in this marketing area elected not to pool milk in August due to disadvantageous intraorder class and uniform price relationships.1/ All Markets Combined and TOTAL may not add due to rounding.2/ Handlers in this marketing area elected not to pool milk in July and August due to disadvantageous intraorder class and uniform price relationships.5/ Handlers in these marketing areas elected not to pool milk in January-November due to disadvantageous intraorder class and uniform price relationships.7/ Handlers in this marketing area elected not to pool milk in September and October due to disadvantageous intraorder class and uniform price relationships.6/ Handlers in this marketing area elected not to pool milk in January and July-October due to disadvantageous intraorder class and uniform price relationships.4/ Handlers in this marketing area elected not to pool milk in January, March, April, and June-October due to disadvantageous intraorder class and uniform price relationships.
Northeast 001 4,054 4,164 4,279 4,342 4,350 4,137 4,022 3,880 3,894 3,898 

Appalachian 005 4,762 4,417 4,727 5,022 4,769 5,179 4,362 4,365 4,288 4,906 Southeast 007 4,785 4,592 4,680 4,920 4,721 4,327 4,043 3,702 4,188 4,552 Florida 006 26,387 33,456 29,949 30,750 28,138 26,625 24,345 21,955 21,257 22,352 Mideast 033 4,474 4,718 4,488 4,742 4,797 4,649 3,500 3,032 3,164 3,337 Upper Midwest 030 3,979 4,119 3,927 3,975 4,004 4,143 2,197 2,205 2,419 2,302 Central 032 5,980 6,345 5,923 6,091 5,971 6,049 3,159 2,755 3,446 3,807 Southwest 126 35,596 29,747 30,902 32,555 32,070 31,104 27,916 23,504 22,773 21,913 Arizona-Las Vegas 131 82,090 85,044 86,657 90,640 85,327 82,486 74,210 67,305 69,816 71,385 Western 135 21,275 22,042 18,860 22,456 23,508 23,516 8,024 10,756 9,986 10,695 Pacific Northwest 124 21,747 21,963 22,856 22,870 22,790 22,893 19,209 19,215 17,574 17,545 All Markets Combined 2/ 5,592 5,750 5,621 5,859 5,841 5,766 4,309 4,054 4,251 4,391 1/ It should be noted that the election not to pool milk normally associated with an order due to disadvantageous intraorder price relationships affects the comparability of this sta Table 6.2/ Figures are computed from the "All Markets Combined" data for number of producers and receipts of producer milk from Tables 5 and 6.

Pounds

JUN OCT JUL AUG SEP

Table 7--Average Daily Delivery of Milk Per Producer to Handlers Regulated Under Federal Orders, by Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY 
Northeast 001 3.80 3.80 3.77 3.72 3.66 3.63 3.57 3.57 3.64 3.75 3.75 

Appalachian 005 3.76 3.76 3.71 3.64 3.59 3.56 3.52 3.54 3.58 3.67 3.67 Southeast 007 3.74 3.70 3.63 3.53 3.50 3.52 3.51 3.53 3.60 3.71 3.72 Florida 006 3.65 3.59 3.53 3.50 3.46 3.47 3.52 3.56 3.59 3.64 3.62 Mideast 033 3.79 3.77 3.74 3.69 3.62 3.59 3.53 3.54 3.61 3.73 3.78 Upper Midwest 030 3.77 3.76 3.74 3.71 3.66 3.60 3.53 3.53 3.63 3.76 3.85 Central 032 3.77 3.75 3.72 3.66 3.60 3.55 3.50 3.52 3.61 3.72 3.78 Southwest 126 3.75 3.71 3.67 3.58 3.52 3.50 3.52 3.47 3.59 3.68 3.70 Arizona-Las Vegas 131 3.63 3.58 3.58 3.57 3.54 3.54 3.56 3.54 3.57 3.61 3.69 Western 135 3.68 3.65 3.63 3.60 3.55 3.48 3.46 3.45 3.55 3.60 3.73 Pacific Northwest 124 3.71 3.69 3.68 3.65 3.62 3.57 3.54 3.52 3.62 3.66 3.82 All Markets Combined 3.76 3.74 3.71 3.66 3.61 3.57 3.54 3.54 3.61 3.71 3.76 1/ Figures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of butterfat and producer milk p

Percent

AUG SEP OCT NOV D

Table 8--Butterfat Test of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL
Northeast 001 8.74 8.73 8.71 8.70 8.67 8.66 8.58 8.57 8.66 8.76 8.7

Mideast 033 8.79 8.78 8.75 8.72 8.72 8.69 8.62 8.62 8.70 8.78 8.8Upper Midwest 030 8.75 8.75 8.75 8.75 8.71 8.69 8.61 8.60 8.70 8.77 8.8Central 032 8.78 8.78 8.77 8.75 8.73 8.70 8.64 8.64 8.75 8.81 8.8Southwest 126 8.77 8.75 8.75 8.73 8.69 8.68 8.67 8.66 8.76 8.80 8.8Western 135 8.74 8.72 8.75 8.74 8.71 8.68 8.63 8.63 8.72 8.79 8.8Pacific Northwest 124 8.72 8.71 8.72 8.71 8.70 8.68 8.66 8.67 8.73 8.75 8.8All Markets Combined 8.76 8.75 8.74 8.73 8.70 8.68 8.62 8.61 8.70 8.78 8.8

Percent

1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying produceMarkets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of nonfat solids and producer milk pounds.

AUG SEP OCT NO

Table 9--Nonfat Solids Test of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL
Northeast 001 3.04 3.04 3.01 2.98 2.96 2.95 2.91 2.91 3.00 3.10 3.10 3

Mideast 033 3.08 3.28 3.03 2.99 2.98 2.97 2.92 2.93 3.01 3.11 3.10 3Upper Midwest 030 3.04 3.04 3.02 3.00 2.97 2.95 2.91 2.91 3.01 3.09 3.12 3Central 032 3.07 3.06 3.04 3.00 2.97 2.95 2.93 2.95 3.06 3.12 3.13 3Southwest 126 3.08 3.05 3.02 2.99 2.95 2.94 2.94 2.96 3.05 3.10 3.13 3Western 135 3.06 3.05 3.04 3.04 2.99 2.97 2.91 2.94 3.04 3.10 3.17 3Pacific Northwest 124 3.04 3.02 3.03 3.01 2.99 2.97 2.95 2.98 3.05 3.09 3.17 3All Markets Combined 3.05 3.08 3.02 3.00 2.97 2.96 2.92 2.93 3.02 3.10 3.12 3

Percent

1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying producers. FigurMarkets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of true protein and producer milk pounds.

AUG SEP OCT NOV D

Table 10--Protein (True) Test of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL
Northeast 001 5.70 5.70 5.70 5.72 5.72 5.71 5.67 5.66 5.67 5.66 5.67 

Mideast 033 5.71 5.71 5.71 5.72 5.74 5.73 5.70 5.69 5.69 5.67 5.69 Upper Midwest 030 5.71 5.71 5.73 5.75 5.74 5.74 5.70 5.69 5.68 5.68 5.70 Central 032 5.71 5.71 5.74 5.75 5.76 5.75 5.71 5.69 5.69 5.68 5.72 Southwest 126 5.69 5.70 5.72 5.74 5.74 5.73 5.72 5.70 5.71 5.70 5.71 Western 135 5.68 5.68 5.71 5.70 5.71 5.71 5.72 5.70 5.69 5.69 5.70 Pacific Northwest 124 5.68 5.69 5.69 5.70 5.71 5.71 5.71 5.69 5.68 5.66 5.67 All Markets Combined 5.70 5.70 5.72 5.73 5.73 5.73 5.69 5.68 5.68 5.67 5.69 

Percent

1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying producers

Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of other solids and producer milk pounds.

AUG SEP OCT NOV 

Table 11--Other Solids Test of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL
Mideast 033 334 334 372 351 331 348 404 405 372 332 328 

Upper Midwest 030 307 313 323 315 321 326 332 341 318 279 271 Central 032 302 310 312 304 310 324 363 375 343 296 274 Southwest 126 314 305 305 274 282 312 340 348 325 319 281 All Markets Combined 314 316 328 311 311 328 360 367 340 307 289 

Thousand

1/ Information shown for those orders which adjust producer payments for the somatic cell count of producer milk. All averages are simple.

AUG SEP OCT NOV

Table 12--Somatic Cell Count of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL
Northeast 001 932 851 888 871 917 827 846 872 925 955 

Appalachian 005 413 350 368 364 366 341 370 376 374 390 Southeast 007 427 374 392 384 390 349 366 382 388 400 Florida 006 228 202 219 209 207 186 196 186 177 193 Mideast 033 596 522 545 533 563 485 522 543 551 586 Upper Midwest 030 362 321 340 338 347 303 328 326 347 363 Central 032 437 394 409 401 401 357 374 390 406 419 Southwest 126 372 318 339 342 339 308 325 341 347 367 Arizona-Las Vegas 131 88 79 83 82 82 72 83 78 80 86 Western 135 95 86 90 92 94 87 93 93 95 101 Pacific Northwest 124 189 163 175 176 180 160 172 169 173 188 All Markets Combined 4,139 3,659 3,847 3,791 3,885 3,475 3,675 3,755 3,863 4,048 3

JUN JUL Federal Milk Order Marketing Area Order Number FEB MAR APR MAY 

Table 13--Utilization of Producer Milk in Class I Products, by Federal Milk Order Marketing Area, 2003 1/

1/ All Markets Combined and TOTAL may not add due to rounding.

JAN AUG SEP OCT N

Million Pounds
Northeast 001 45.28 44.76 41.32 41.28 42.14 41.30 41.93 44.86 49.11 49.68 4

Appalachian 005 71.39 71.40 64.97 65.89 66.40 62.33 77.05 78.22 77.60 73.91 6Southeast 007 64.30 65.22 62.49 60.39 62.38 61.57 66.33 79.18 72.08 67.36 6Florida 006 88.91 87.10 86.40 77.76 79.13 77.25 86.67 87.77 90.22 90.32 8Mideast 033 40.77 37.60 37.42 36.18 36.68 33.94 51.26 53.82 54.74 54.23 3Upper Midwest 030 19.63 18.54 17.54 18.15 17.90 15.65 49.67 50.64 53.95 55.25 3Central 032 26.07 24.72 27.48 27.41 27.12 25.38 49.22 59.75 57.15 53.61 3Southwest 126 44.31 38.65 35.95 36.67 35.59 34.87 54.61 61.01 65.42 65.75 4Arizona-Las Vegas 131 32.36 30.80 29.58 29.15 28.89 27.61 34.01 34.73 35.83 36.66 3Western 135 18.74 18.56 20.39 16.27 14.68 14.34 52.59 50.39 56.33 57.53 4Pacific Northwest 124 30.46 28.82 27.18 28.05 28.07 25.87 41.91 40.64 46.67 49.84 4All Markets Combined 38.39 36.53 35.67 35.21 35.06 33.11 51.47 55.18 57.21 56.84 4

Table 14--Class I Utilization Percentage of Producer Milk , by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR 

1/ Figures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of producer milk used in Class I and total pro

Percent

MAY JUN JUL 

AUG SEP OCT N
Northeast 001 2.04 2.04 2.02 2.05 2.04 2.06 2.09 2.13 2.06 2.08 2.1

Appalachian 005 2.13 2.11 2.09 2.09 2.11 2.15 2.15 2.10 2.09 2.12 2.1Southeast 007 2.13 2.12 2.11 2.11 2.15 2.22 2.23 2.15 2.13 2.18 2.2Florida 006 2.13 2.12 2.14 2.15 2.21 2.26 2.29 2.23 2.21 2.30 2.3Mideast 033 1.86 1.87 1.86 1.87 1.85 1.90 1.91 1.89 1.86 1.89 1.9Upper Midwest 030 1.53 1.53 1.53 1.54 1.55 1.59 1.61 1.59 1.57 1.58 1.6Central 032 1.81 1.79 1.80 1.78 1.81 1.85 1.87 1.82 1.79 1.81 1.9Southwest 126 2.32 2.30 2.32 2.31 2.33 2.42 2.43 2.24 2.30 2.34 2.3Arizona-Las Vegas 131 1.94 1.95 1.96 1.98 2.00 2.04 2.10 2.01 2.01 2.04 2.0Western 135 1.86 1.89 1.95 2.14 1.96 2.03 1.96 1.98 1.99 2.00 2.0Pacific Northwest 124 1.75 1.75 1.76 1.81 1.78 1.84 1.81 1.86 1.81 1.84 2.0All Markets Combined 1.98 1.97 1.97 1.98 1.98 2.03 2.04 2.01 1.98 2.01 2.0

AUG

Table 15--Butterfat Test of Producer Milk Used in Class I Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR SEP NO

MAY

1/ Figures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of butterfat and producer milk pounds used 

Percent

JUN JUL 

OCT
Northeast 001 8.90 8.89 8.87 8.85 8.83 8.81 8.72 8.71 8.82 8.91 8.9

Mideast 033 8.98 8.97 8.93 8.88 8.90 8.86 8.78 8.78 8.87 8.96 8.9Upper Midwest 030 8.95 8.95 8.94 8.93 8.89 8.87 8.78 8.78 8.88 8.98 9.0Central 032 9.00 9.00 8.98 8.93 8.91 8.87 8.78 8.79 8.91 8.99 9.0Southwest 126 8.93 8.91 8.90 8.87 8.82 8.80 8.76 8.77 8.88 8.93 8.9Western 135 8.91 8.90 8.91 8.87 8.85 8.82 8.76 8.77 8.88 8.95 9.0Pacific Northwest 124 8.89 8.88 8.89 8.87 8.86 8.84 8.81 8.83 8.91 8.92 9.0All Markets Combined ` 8.94 8.93 8.91 8.88 8.86 8.83 8.76 8.76 8.86 8.94 8.9

Table 16--Nonfat Solids Test of Producer Milk Used in Class I Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN NO

1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying producers. Figures shown fAVERAGE are computed from the applicable monthly or year-to-date totals of nonfat solids and producer milk pounds used in Class I.

Percent

JUL 

AUG SEP OCT
Northeast 001 349 330 403 370 378 393 410 395 387 386 33

Appalachian 005 68 66 81 79 89 89 78 70 77 81 7Southeast 007 51 48 57 62 59 71 72 58 55 52 6Florida 006 17 17 21 19 15 18 18 20 16 16 2Mideast 2/ 033 154 206 180 222 233 226 252 246 249 222 20Upper Midwest 3/ 030 43 42 51 53 49 52 105 119 114 112 11Central 3/ 032 97 89 95 103 102 107 154 144 138 129 11Southwest 4/ 126 74 98 116 124 127 129 101 110 101 92 9Arizona-Las Vegas 131 11 14 15 16 19 20 18 19 23 19 2Western 5/ 135 28 27 30 31 30 36 27 30 25 31 3Pacific Northwest 5/ 124 37 34 37 39 39 43 41 44 32 31 3All Markets Combined 928 971 1,087 1,119 1,140 1,183 1,276 1,255 1,217 1,171 1,1

SEP NO

Federal Milk Order Marketing Area

3/ Handlers in these marketing areas elected not to pool producer milk used in Class II in January-June due to the relationship between the order's Class II and uniform pr

1/ All Markets Combined and TOTAL may not add due to rounding.2/ Handlers in this marketing area elected not to pool producer milk used in Class II in January, March, April, and June due to the relationship between the order's Class I

Table 17--Utilization of Producer Milk in Class II Products, by Federal Milk Order Marketing Area, 2003 1/

Order 

Number JAN FEB MAR APR MAY JUN JUL OCT

4/ Handlers in this marketing area elected not to pool producer milk used in Class II in January due to the relationship between the order's Class II and uniform prices.5/ Handlers in this marketing area elected not to pool producer milk used in Class II in July-October due to the relationship between the order's Class II and uniform price

AUG

Million Pounds
Northeast 001 16.94 17.35 18.76 17.52 17.34 19.61 20.31 20.34 20.55 20.06 18

Appalachian 005 11.76 13.55 14.32 14.34 16.16 16.25 16.14 14.60 16.08 15.40 14Southeast 3/ 007 7.74 8.43 9.15 9.80 9.40 12.51 13.01 12.00 10.32 8.70 10Florida 006 6.72 7.30 8.13 7.03 5.67 7.30 8.14 9.19 8.09 7.65 9.Mideast 033 10.55 14.83 12.36 15.09 15.22 15.81 24.72 24.38 24.72 20.59 14Upper Midwest 030 2.32 2.40 2.65 2.84 2.55 2.71 15.89 18.43 17.63 16.96 11Central 032 5.75 5.56 6.39 7.06 6.87 7.59 20.33 22.07 19.49 16.50 10Southwest 126 8.81 11.94 12.28 13.34 13.35 14.57 17.05 19.70 19.03 16.53 12Arizona-Las Vegas 131 3.88 5.34 5.23 5.72 6.65 7.80 7.55 8.69 10.16 8.24 8.Western 135 5.54 5.87 6.81 5.46 4.76 5.89 15.42 16.27 14.99 17.63 14Pacific Northwest 124 5.93 6.01 5.79 6.21 6.04 6.97 9.90 10.55 8.55 8.25 7.All Markets Combined 8.61 9.69 10.08 10.39 10.29 11.27 17.87 18.44 18.02 16.45 131/ It should be noted that the election not to pool milk normally associated with an order due to a disadvantageous price relationship affects the comparability of this statisFigures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of producer milk used in Class II and total pro

Percent

MAY JUN JUL 

AUG SEP

Table 18--Class II Utilization Percentage of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR OCT NO
Northeast 001 7.39 7.36 7.13 7.45 7.68 7.10 6.98 6.80 6.81 7.12 7.

Appalachian 005 7.94 8.08 8.03 8.37 7.88 7.39 8.16 8.53 8.22 8.35 8.Southeast 007 9.33 8.56 8.23 8.17 8.32 7.31 7.63 8.46 8.96 9.06 7.Florida 006 15.73 15.10 14.81 14.95 17.29 14.62 15.54 14.94 17.76 17.66 14Mideast 033 7.94 6.49 7.86 6.84 6.63 7.28 6.08 6.12 5.97 6.96 7.Upper Midwest 030 16.26 15.59 13.97 13.65 13.72 12.99 8.24 7.94 8.20 7.94 8.Central 032 8.42 8.32 8.52 8.41 8.32 8.11 6.33 6.27 6.62 6.83 6.Southwest 126 8.46 7.77 7.28 7.09 6.87 7.68 7.89 8.07 8.01 8.77 9.Arizona-Las Vegas 131 9.55 10.07 9.59 10.76 14.71 13.31 11.69 10.41 9.42 9.10 10Western 135 5.98 6.66 5.79 4.95 6.49 7.79 7.39 6.91 7.14 6.12 6.Pacific Northwest 124 8.99 8.98 8.98 9.79 9.29 8.72 10.25 8.72 10.94 11.38 11All Markets Combined 8.43 7.97 8.04 7.96 8.01 7.88 7.31 7.25 7.34 7.70 7.1/ Figures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of butterfat and producer milk pounds used 

Percent

JUN JUL 

AUG SEP

Table 19--Butterfat Test of Producer Milk Used in Class II Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR OCT NO

MAY
Northeast 001 8.42 8.41 8.41 8.36 8.32 8.35 8.28 8.28 8.38 8.44 8.

Mideast 033 8.41 8.55 8.37 8.43 8.45 8.36 8.40 8.40 8.49 8.48 8.Upper Midwest 030 7.63 7.69 7.82 7.83 7.80 7.85 8.18 8.21 8.29 8.40 8.Central 032 8.41 8.42 8.37 8.34 8.35 8.32 8.41 8.41 8.50 8.53 8.Southwest 126 8.35 8.40 8.42 8.42 8.40 8.31 8.28 8.26 8.37 8.34 8.Western 135 8.55 8.49 8.58 8.63 8.45 8.31 8.32 8.36 8.45 8.61 8.Pacific Northwest 124 8.24 8.22 8.24 8.15 8.18 8.21 8.05 8.21 8.06 8.05 8.All Markets Combined 8.36 8.40 8.36 8.35 8.34 8.31 8.31 8.31 8.40 8.44 8.1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying producers. Figures shown foAVERAGE are computed from the applicable monthly or year-to-date totals of nonfat solids and producer milk pounds used in Class II.

Percent

JUN JUL 

AUG SEP OCT NO

Table 20--Nonfat Solids Test of Producer Milk Used in Class II Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY
Northeast 001 584 536 625 601 609 615 604 550 497 498 50

Appalachian 2/ 005 53 39 64 56 50 66 7 4 10 27 2Southeast 3/ 007 134 117 137 147 143 123 86 7 69 96 9Florida 006 6 7 9 22 20 19 8 1 1 4/ 1 Mideast 5/ 033 651 589 645 638 659 640 184 138 156 214 60Upper Midwest 6/ 030 1,403 1,282 1,497 1,431 1,508 1,496 76 54 37 31 37Central 6/ 032 1,065 979 859 837 838 821 130 54 119 175 56Southwest 5/ 126 242 246 273 263 279 255 9 5 5 8 21Arizona-Las Vegas 7/ 131 75 81 104 97 101 102 102 96 91 93 9Western 8/ 135 309 287 313 432 452 427 5 3 4 4 4Pacific Northwest 6/ 124 197 186 220 212 217 212 2 25 3 3 6All Markets Combined 4,720 4,350 4,743 4,737 4,875 4,774 1,213 937 992 1,150 2,56/ Handlers in these marketing areas elected not to pool producer milk used in Class III in July-November due to the relationship between the order's Class III and uniform 

JUL 

Federal Milk Order Marketing Area APR Order Number

5/ Handlers in these marketing areas elected not to pool producer milk used in Class III in July-October due to the relationship between the order's Class III and uniform p

MAR MAY JUN 

2/ Handlers in this marketing area elected not to pool producer milk used in Class III in July and August due to the relationship between the order's Class III and uniform 

3/ Handlers in this marketing area elected not to pool producer milk used in Class III in August due to the relationship between the order's Class III and uniform price.

FEB

Million Pounds

7/ Handlers in this marketing area elected not to pool producer milk used in Class III in September and October due to the relationship between the order's Class III and u8/ Handlers in this marketing area elected not to pool producer milk used in Class III in July-December due to the relationship between the order's Class III and uniform p4/ Less than 500,000 pounds.

Table 21--Utilization of Producer Milk in Class III Products, by Federal Milk Order Marketing Area, 2003 1/

1/ All Markets Combined and TOTAL may not add due to rounding.

JAN AUG SEP OCT NO
Northeast 001 28.39 28.18 29.05 28.47 27.99 30.69 29.96 28.30 26.38 25.92 27

Appalachian 005 9.22 7.89 11.25 10.15 9.09 12.15 1.56 0.80 2.17 5.04 5.Southeast 007 20.22 20.50 21.84 23.18 22.88 21.66 15.57 1.35 12.87 16.12 16Florida 006 2.36 3.16 3.48 8.23 7.51 7.81 3.51 0.45 0.30 0.14 0.Mideast 033 44.52 42.44 44.25 43.31 42.96 44.72 18.05 13.70 15.52 19.80 42Upper Midwest 030 76.02 74.15 77.25 76.81 77.89 77.37 11.58 8.35 5.73 4.76 36Central 032 63.49 61.42 57.76 57.22 56.63 58.37 17.14 8.28 16.79 22.44 48Southwest 126 28.88 29.95 28.91 28.17 29.21 28.78 1.47 0.89 1.00 1.47 28Arizona-Las Vegas 131 27.69 31.40 37.12 34.70 35.77 38.99 41.73 43.16 40.79 39.53 40Western 135 60.78 61.69 70.74 76.62 70.68 70.53 2.63 1.89 2.43 2.19 22Pacific Northwest 124 31.69 32.95 34.13 33.95 33.74 34.11 0.40 6.14 0.79 0.92 14All Markets Combined 43.78 43.42 43.97 43.99 43.99 45.47 16.99 13.77 14.70 16.15 30

Percent

MAY JUN JUL AUG SEP OCT NO

Table 22--Class III Utilization Percentage of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR

on Table 21. Figures shown for all Markets Combined and Average are computed from the applicable monthly or year-to-date totals of producer milk used in Class III an

1/ It should be noted that the election not to pool milk normally associated with an order due to a disadvantageous price relationship affects the comparability of this statis
Northeast 001 3.53 3.70 3.77 3.80 3.65 3.48 3.49 3.55 3.75 3.95 3.

Appalachian 005 5.18 4.79 4.17 3.90 4.07 3.98 11.96 21.23 12.50 6.71 5.Southeast 007 4.13 4.11 4.12 3.95 4.11 4.02 4.22 12.56 4.69 4.63 5.Florida 006 5.64 3.57 4.42 3.67 4.37 3.70 5.18 15.68 14.35 8.83 20Mideast 033 3.52 3.44 3.34 3.41 3.50 3.26 3.63 4.08 4.43 4.08 3.Upper Midwest 030 3.65 3.65 3.61 3.57 3.53 3.45 4.20 5.31 7.38 7.14 4.Central 032 3.65 3.62 3.58 3.57 3.54 3.57 4.04 5.05 4.43 4.13 3.Southwest 126 3.46 3.10 3.28 3.14 3.42 3.60 16.44 22.70 17.15 15.11 3.Arizona-Las Vegas 131 5.95 5.47 5.83 5.53 4.77 4.31 3.99 3.87 4.12 4.88 4.Western 135 3.40 3.36 3.40 3.44 3.33 3.23 11.78 21.51 19.84 24.28 5.Pacific Northwest 124 3.88 3.77 3.71 3.70 3.84 3.79 16.39 3.89 11.78 9.47 4.All Markets Combined 3.67 3.63 3.64 3.60 3.58 3.50 3.91 4.17 4.43 4.45 3.

JUN JUL 

AUG SEP OCT NO

1/ Figures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of butterfat and producer milk pounds used 

Percent

Table 23--Butterfat Test of Producer Milk Used in Class III Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY
Northeast 001 3.03 3.03 3.00 2.96 2.95 2.95 2.92 2.91 2.99 3.10 3.1

Mideast 033 3.07 3.07 3.04 3.00 2.98 2.97 2.91 2.89 2.97 3.09 3.1Upper Midwest 030 3.04 3.04 3.03 3.00 2.97 2.95 2.88 2.85 2.87 2.98 3.1Central 032 3.07 3.06 3.03 3.00 2.97 2.94 2.89 2.89 3.00 3.08 3.1Southwest 126 3.06 3.04 3.02 2.98 2.94 2.92 2.56 2.40 2.65 2.74 3.1Western 135 3.08 3.07 3.05 3.05 3.01 2.99 2.64 2.40 2.54 2.44 3.1Pacific Northwest 124 3.04 3.03 3.04 3.02 3.02 2.98 2.54 2.88 2.83 2.94 3.2

3.05 3.05 3.03 3.00 2.97 2.96 2.91 2.90 2.98 3.08 3.1

NO

Table 24--Protein (True) Test of Producer Milk Used in Class III Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR JUN 

1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying producers. Figures shown fo

AVERAGE are computed from the applicable monthly or year-to-date totals of true protein and producer milk pounds used in Class III.All Markets Combined

APR MAY JUL AUG SEP OCT 

Percent
Northeast 001 5.70 5.69 5.68 5.70 5.70 5.70 5.66 5.64 5.64 5.64 5.6

Mideast 033 5.73 5.72 5.74 5.74 5.74 5.75 5.67 5.64 5.64 5.65 5.7Upper Midwest 030 5.72 5.72 5.74 5.76 5.75 5.75 5.69 5.59 5.46 5.49 5.6Central 032 5.71 5.71 5.74 5.76 5.76 5.75 5.69 5.61 5.67 5.67 5.7Southwest 126 5.69 5.72 5.73 5.76 5.74 5.72 4.96 4.54 4.89 5.01 5.6Western 135 5.70 5.69 5.72 5.71 5.72 5.71 5.19 4.63 4.75 4.48 5.6Pacific Northwest 124 5.68 5.69 5.70 5.70 5.70 5.69 4.94 5.64 5.19 5.31 5.6

5.71 5.71 5.73 5.74 5.74 5.74 5.66 5.63 5.63 5.63 5.6

Table 25--Other Solids Test of Producer Milk Used in Class III Products, by Federal Milk Order Marketing Area, 2003 1/

APR MAY Order Number JAN JUL 

NO

1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying producers. Figures shown fAVERAGE are computed from the applicable monthly or year-to-date totals of other solids and producer milk pounds used in Class III.All Markets Combined

AUG SEP OCT

Percent

Federal Milk Order 

Marketing Area FEB MAR JUN
Northeast 001 193 185 234 268 273 168 157 126 74 84 138 

Appalachian 005 44 35 54 53 46 51 25 31 20 30 55 Southeast 007 51 33 41 42 33 24 28 36 25 47 57 Florida 006 5 6 5 19 20 18 4 5 3 4 9 Mideast 033 61 71 87 80 79 79 61 82 51 58 83 Upper Midwest 2/ 030 38 85 49 41 32 82 151 145 146 151 179 Central 3/ 032 79 132 125 121 139 122 101 65 47 58 117 Southwest 126 151 160 215 203 208 193 160 103 77 91 109 Arizona-Las Vegas 131 98 83 78 85 81 67 41 30 29 36 45 Western 4/ 135 76 65 9 9 63 56 52 58 44 40 44 Pacific Northwest 5/ 124 198 182 212 199 206 205 197 177 164 155 158 

994 1,037 1,109 1,122 1,181 1,065 976 858 680 753 994 

and uniform prices.

Table 26--Utilization of Producer Milk in Class IV Products, by Federal Milk Order Marketing Area, 2003 1/

2/ Handlers in this marketing area elected not to pool producer milk used in Class IV in January-June due to the relationship between the order's Class IV and uniform 

FEB MAR

1/ All Markets Combined and TOTAL may not add due to rounding.All Markets Combined

AUG SEP

5/ Handlers in this marketing area elected not to pool producer milk used in Class IV in July-November due to the relationship between the order's Class IV and unifo3/ Handlers in this marketing area elected not to pool producer milk used in Class IV in January-March due to the relationship between the order's Class IV and unifor4/ Handlers in this marketing area elected not to pool producer milk used in Class IV in January, March, April, and July-November due to the relationship between the 

JUN JUL 

Federal Milk Order Marketing Area MAY Order Number JAN APR

Million Pounds

OCT NOV 
Northeast 001 9.38 9.71 10.87 12.72 12.53 8.40 7.80 6.51 3.95 4.35 7.

Appalachian 005 7.63 7.16 9.46 9.62 8.35 9.27 5.26 6.39 4.16 5.65 10Southeast 007 7.75 5.85 6.52 6.64 5.34 4.26 5.09 7.48 4.73 7.83 9.Florida 006 2.01 2.44 1.99 6.98 7.69 7.64 1.68 2.58 1.38 1.88 3.Mideast 033 4.17 5.14 5.97 5.42 5.14 5.52 5.97 8.10 5.02 5.38 5.Upper Midwest 030 2.03 4.91 2.55 2.20 1.66 4.26 22.86 22.58 22.68 23.02 17Central 032 4.68 8.30 8.37 8.30 9.39 8.66 13.30 9.90 6.56 7.44 10Southwest 126 18.01 19.46 22.86 21.82 21.85 21.79 26.88 18.39 14.55 16.24 14Arizona-Las Vegas 131 36.07 32.46 28.08 30.43 28.69 25.60 16.72 13.42 13.23 15.56 18Western 135 14.94 13.88 2.06 1.65 9.87 9.25 29.36 31.45 26.25 22.64 20Pacific Northwest 124 31.92 32.21 32.91 31.79 32.15 33.05 47.79 42.67 43.99 40.99 36

9.22 10.36 10.28 10.42 10.66 10.15 13.67 12.61 10.07 10.57 11

Table 27--Class IV Utilization Percentage of Producer Milk, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR JUN MAY 

Percent

1/ It should be noted that the election not to pool milk normally associated with an order due to a disadvantageous price relationship affects the comparability of this statisFigures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of producer milk used in Class IV and total pr

JUL NO

All Markets Combined

AUG SEP OCT 
Northeast 001 6.66 5.83 4.60 3.87 3.57 3.78 2.94 3.52 6.02 6.06 4.

Appalachian 005 10.87 10.90 7.68 6.88 6.55 5.78 6.91 7.58 8.62 8.55 5.Southeast 007 10.44 12.89 10.02 8.10 8.24 8.65 7.53 8.59 11.36 9.11 7.Florida 006 28.00 21.82 16.39 6.78 5.33 4.80 5.56 6.20 8.24 10.17 5.Mideast 033 15.08 12.61 10.00 9.28 8.38 6.08 6.61 5.82 8.43 8.71 8.Upper Midwest 030 15.91 8.12 12.29 13.84 17.14 7.61 4.09 3.64 4.03 5.22 4.Central 032 10.60 7.55 7.27 6.39 5.70 4.39 4.50 6.39 8.48 9.35 6.Southwest 126 5.40 4.97 4.33 4.13 3.54 2.32 2.26 1.66 2.71 2.90 2.Arizona-Las Vegas 131 2.73 2.23 1.22 1.50 0.98 0.99 1.79 2.03 1.63 1.15 1.Western 135 6.21 6.03 20.90 21.39 6.08 4.90 3.31 2.92 3.33 3.73 4.Pacific Northwest 124 4.42 4.35 4.29 4.02 3.94 3.60 3.55 3.76 3.97 4.19 4.

7.27 6.52 5.85 5.29 4.80 4.12 3.74 4.09 4.99 5.54 4.

Table 28--Butterfat Test of Producer Milk Used in Class IV Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN NO

1/ Figures shown for All Markets Combined and AVERAGE are computed from the applicable monthly or year-to-date totals of butterfat and producer milk pounds used 

All Markets Combined

JUL OCT AUG SEP

Percent
Northeast 001 8.51 8.59 8.66 8.72 8.71 8.66 8.65 8.58 8.45 8.53 8.73 

Mideast 033 7.74 7.96 8.17 8.20 8.27 8.45 8.33 8.41 8.27 8.31 8.33 Upper Midwest 030 7.65 8.31 7.96 7.81 7.48 8.30 8.54 8.57 8.67 8.61 8.75 Central 032 8.16 8.41 8.44 8.48 8.52 8.61 8.54 8.38 8.30 8.27 8.61 Southwest 126 8.61 8.61 8.68 8.68 8.70 8.78 8.78 8.81 8.81 8.86 8.95 Western 135 8.46 8.44 7.18 7.12 8.39 8.51 8.63 8.66 8.68 8.72 8.81 Pacific Northwest 124 8.64 8.63 8.65 8.65 8.64 8.67 8.66 8.65 8.69 8.69 8.79 

8.42 8.48 8.54 8.56 8.57 8.62 8.62 8.60 8.60 8.60 8.72 

Table 29--Nonfat Solids Test of Producer Milk Used in Class IV Products, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN NOV

1/ Figures are shown for those orders for which the information is available; that is, the orders with the component pricing system for paying producers. Figures show

AVERAGE are computed from the applicable monthly or year-to-date totals of nonfat solids and producer milk pounds used in Class IV.All Markets Combined

JUL OCT AUG SEP

Percent
44

SUMMARY OF CLASS AND PRODUCER PRICES AND GROSS VALUES 

During 2003, the base skim milk price for Class I averaged $7.47 per cwt., and was the advanced Class III 

skim milk pricing factor in August through December, and the Class IV skim milk pricing factor in 

January through May and July. It was the same as both pricing factors in June. This price ranged from a 

high of $10.43 in October to a low of $5.91 in May. The effective advanced butterfat pricing factor 

averaged $1.1937 per pound, and ranged from $1.1227 in April to $1.2944 in September. The Class I base 

price, also referred to as the Class I mover, averaged $11.39 per cwt., ranging from $9.64 in April per cwt 

to $11.96 in January. For all markets combined, the Class I price averaged $14.10 per cwt. in 2003 (3.0 

percent higher than 2002), ranging from $12.33 in April to $17.05 in November. On an individual order 

basis, the annual average Class I price ranged from $13.27 in the Upper Midwest order to $15.34 in the 

Florida order. 

The Class II price averaged $10.76 per cwt. in 2003, peaking at $11.30 in December, hitting the low point 

of $10.43 in May. The Class II, III, or IV prices do not vary from order to order. The Class III price 

averaged $11.42 per cwt. in 2003, ranging from $9.11 in March to $14.39 in October. The Class IV price 

averaged $10.00, ranging from $9.73 in April to $10.52 in December. 

During 2003, the uniform milk price, a statistical measure of the minimum price received by dairy farmers 

marketing milk under the Federal order program, averaged $12.12 per cwt (1.8 percent higher than 2002). 

This price peaked in October at $14.81 and hit its low point in March at $10.69. On an individual order 

basis, the uniform milk price ranged from $10.93 in the Upper Midwest order to $14.69 in the Florida 

order. For those producers paid under the component pricing system, those marketing milk under orders 1, 

30, 32, 33, 124, 126, and 135, the annual average values of their milk payment components were: producer 

price differential, $0.81 per cwt.; butterfat, $1.2099 per pound; true protein, $2.3770 per pound; and other 

solids, $0.0129 per pound. For those producers subject to the somatic cell adjustment to their milk 

payment, the rate averaged $0.00065. For those producers under the skim milk/butterfat pricing system, 

those marketing milk under orders 5, 6, 7, and 131, the uniform skim milk price averaged $9.46 per cwt. in 

2003, and the uniform butterfat price averaged $1.2167 per pound. 

The gross value of producer milk receipts under the Federal order program in 2003 was $14.1 billion, about 

66 percent of the cash receipts from all milk marketings in the country. This figure was computed for each 

order using the applicable minimum component prices adjusted to the actual component tests of producer 

milk receipts. On an individual order basis, the gross value of producer milk receipts was the highest in the 

Northeast order, followed next by the Upper Midwest order. Per producer, the gross value of producer 

milk receipts averaged $242,066. Producers in the Arizona-Las Vegas order had a gross value of more than 

$3.4 million each, more than twice as much as the next largest per producer gross value in the Florida 

order. On the other end of the scale, producers in the Upper Midwest order had a gross value of $153,434 

each. 
45

FEDERAL MILK ORDER PRICE FORMULAS FOR 2003 

Note: Milk prices are per 100 pounds or cwt., rounded to the nearest cent. 

Component prices are per pound, rounded to nearest one-hundredth cent. 

Cheese, dry whey, butter, and nonfat dry milk prices are weighted monthly averages of weekly 

NASS survey prices, rounded to the nearest one-hundredth cent. 

Class I: 

 Class I Price = (Class I skim milk price x 0.965) + (Class I butterfat price x 3.5). 

 Class I Skim Milk Price = Higher of advanced Class III or IV skim milk pricing factors + applicable Class I 

 differential. 

 Class I Butterfat Price = Advanced butterfat pricing factor+ (applicable Class I differential divided by 100). 

 Note: Advanced pricing factors are computed using applicable price formulas listed below, 

 except that product price averages are for two weeks. 

Class II: 

 Class II Price = (Class II skim milk price x 0.965) + (Class II butterfat price x 3.5). 

 Class II Skim Milk Price = Advanced Class IV skim milk pricing factor + $0.70. 

 Class II Butterfat Price = Butterfat price + $0.007. 

 Class II Nonfat Solids Price = Class II skim milk price divided by 9. 

 

Class III: 

 Class III Price = (Class III skim milk price x 0.965) + (Butterfat price x 3.5). 

 Class III Skim Milk Price = (Protein price x 3.1) + (Other solids price x 5.9). 

 Protein Price (Jan.-Mar.) = ((Cheese price – 0.165) x 1.405 + ((((Cheese price – 0.165) x 1.582)- 

 Butterfat price) x 1.28). 

 Protein Price (Apr.-Dec.) = ((Cheese price – 0.165) x 1.383 + ((((Cheese price – 0.165) x 1.572)- 

 Butterfat price x 0.9) x1.17). 

 Other Solids Price (Jan.-Mar.) = (Dry whey price – 0.14) divided by 0.968, snubbed at zero. 

 Other Solids Price (Apr.-Dec.) = (Dry whey price – 0.159) times 1.03. 

 Butterfat Price (Jan.-Mar.) = (Butter price – 0.115) divided by 0.82. 

 Butterfat Price (Apr.-Dec.) = (Butterfat price -0.115) times 1.20. 

Class IV: 

 Class IV Price = (Class IV skim milk price x 0.965) + (Butterfat price x 3.5). 

 Class IV Skim Milk Price = Nonfat solids price x 9. 

 Nonfat Solids Price (Jan.-Mar.) = Nonfat dry milk price - 0.14 

 Nonfat Solids Price (Apr.-Dec.) = (Nonfat dry milk price - 0.14) x 0.99. 

 Butterfat Price = See Class III. 

Somatic Cell Adjustment Rate = Cheese price x 0.0005, rounded to fifth decimal place. 

 Rate is per 1,000 somatic cell count difference from 350,000. 
Table 30--NASS Dairy Product Price Averages Used in Federal Milk Order Price Formulas, 2003 1/ 

Product Price Averages For: 

Class I (Skim, Bfat.), Class II (Skim, Nonfat Solids) Class II (Bfat.), Class III, Class IV, Co

Butter Nonfat dry milk Cheese Dry Whey Butter Nonfat dry milk 

Year and 

Month Weeks 

ending 

Dollars per pound 

Weeks 

ending 

Dollars per 

2003

Jan 12/7,14 1.0813 0.8813 1.1195 0.2038 1/4,11,18,25 1.0872 0.8207 

Feb 1/4,11 1.1099 0.8287 1.1358 0.1787 2/1,8,15,22 1.0476 0.8111 

Mar 2/8,15 1.0477 0.8108 1.1304 0.1641 3/1,8,15,22,29 1.0546 0.8051 

Apr 3/8,15 1.0506 0.8048 1.0697 0.1594 4/5,12,19,26 1.0736 0.8030 

May 4/5,12 1.0702 0.8032 1.0842 0.1589 5/3,10,17,24 1.0743 0.8040 

Jun 5/10,17 1.0733 0.8043 1.1420 0.1448 5/31,6/7,14,21,28 1.0797 0.8040 

Jul 6/7,14 1.0808 0.8040 1.1387 0.1372 7/5,12,19,26 1.1196 0.8072 

Aug 7/5,12 1.1028 0.8062 1.2685 0.1452 8/2,9,16,23,30 1.1578 0.8105 

Sep 8/9,16 1.1937 0.8118 1.5396 0.1599 9/6,13,20,27 1.1332 0.8111 

Oct 9/6,13 1.1156 0.8094 1.5943 0.1716 10/4,11,18,25 1.1611 0.8109 

Nov 10/4,11 1.1619 0.8117 1.5921 0.1877 11/1,8,15,22,29 1.1881 0.8130 

Dec 11/8,15 1.1822 0.8153 1.5331 0.1947 12/6,13,20,27 1.2557 0.8070 

Avg. ---- 1.1058 0.8160 1.2790 0.1672 ---- 1.1194 0.8090 

1/ Figures are the average of the applicable weekly prices weighted by the sales volume for the week. See columns labeled “weeks end

 The most recently released information for the week is used. Averages are computed by the Agricultural Marketing Service. 
Table 31--Federal Milk Order Class I and Class II Advanced Prices and Pricing Factors, 2003

Class I Base 

Price 1/ 

Base Skim 

Milk Price for 

Class I 2/ 

Advanced 

Class III Skim 

Milk Pricing 

Factor 

Advanced 

Class IV Skim 

Milk Pricing 

Factor 

Advanced 

Butterfat Pricing 

Factor 3/ 

Class 

Milk 

Year and Month Release Date 

Dollars per cwt. $ per lb. $ pe

2003

Jan 12/20/02 10.56 6.67 5.86 6.67 1.1784 7

Feb 1/17/03 10.23 6.20 5.74 6.20 1.2133 6

Mar 2/21 9.81 6.04 5.90 6.04 1.1374 6

 Apr 4/ 3/21 9.64 5.92 5.37 5.92 1.1227 6

May 4/18 9.71 5.91 5.44 5.91 1.1462 6

Jun 5/23 9.74 5.92 5.92 5.92 1.1500 6

Jul 6/20 9.77 5.92 5.81 5.92 1.1590 6

Aug 7/18 10.97 7.07 7.07 5.94 1.1854 6

Sep 8/22 13.71 9.51 9.51 5.99 1.2944 6

Oct 9/19 14.27 10.43 10.43 5.96 1.2007 6

Nov 10/17 14.37 10.33 10.33 5.99 1.2563 6

Dec 11/21 13.84 9.70 9.70 6.02 1.2806 6

Avg. ---- 11.39 7.47 7.26 6.04 1.1937 6

1/ This price is shown for informational purposes only; it is not defined in Section 1000.50 of the order. It equals (the base skim milk 

0.965) plus (the advanced butterfat pricing factor times 3.5). 2/ The higher of the advanced Class III or IV skim milk pricing factors. The Class I skim milk prices equals this price plus the applica

3/ The Class I butterfat price equals this price plus the (applicable Class I differential divided by 100). 

4/ Beginning with the prices for April 2003, the new formulas in the Final Decision dated November 7, 2002 are being used. 
Table 32--Federal Milk Order Class II, Class III, and Class IV Milk and Component Prices, 2003 

Class II 

Price 

1/ 

Class II 

Butterfat 

Price 

Class III 

Price 

Class III 

Skim 

Milk 

Price 

Class IV 

Price 

Class IV 

Skim 

Milk 

Price 

Butterfat 

Price 

2/ 3/ 

Nonfat 

Solids 

Price 

Protein 

Price 

3/ 

Year and 

Month 

Release 

Date 

$/cwt. $/lb. Dollars per cwt. Dollars per pound 

2003

Jan 1/31/03 11.29 1.1926 9.78 5.83 10.07 6.13 1.1856 0.6807 1.8164 

Feb 2/28 10.66 1.1443 9.66 5.89 9.81 6.04 1.1373 0.6711 1.8538 

Mar 4/4 10.54 1.1529 9.11 5.28 9.79 5.99 1.1459 0.6651 1.6648 

 Apr 5/ 5/2 10.44 1.1573 9.41 5.58 9.73 5.91 1.1503 0.6564 1.8006 

May 5/30 10.43 1.1582 9.71 5.89 9.74 5.92 1.1512 0.6574 1.9275 

Jun 7/3 10.46 1.1646 9.75 5.91 9.76 5.92 1.1576 0.6574 1.9434 

Jul 8/1 10.63 1.2125 11.78 7.83 9.95 5.94 1.2055 0.6605 2.5480 

Aug 9/5 10.81 1.2584 13.80 9.76 10.14 5.97 1.2514 0.6638 3.1438 

Sep 10/3 10.76 1.2288 14.30 10.39 10.05 5.98 1.2218 0.6644 3.3180 

Oct 10/31 10.84 1.2623 14.39 10.36 10.16 5.98 1.2553 0.6642 3.2815 

Nov 12/5 10.99 1.2947 13.47 9.29 10.30 6.00 1.2877 0.6663 2.9267 

Dec 1/2/04 11.30 1.3758 11.87 7.34 10.52 5.94 1.3688 0.6603 2.2997 

Avg --- 10.76 1.2169 11.42 7.45 10.00 5.98 1.2099 0.6640 2.3770 

1/ See Table 31—Federal Milk Order Class I and Class II Advanced Prices and Pricing Factors, for Class II skim milk prices. 

2/ Butterfat price for both Class III and IV. 3/ Producer component prices; applicable to orders 1, 30, 32, 33, 124, 126, and 135. 4/ Adjustment to producer payment in component pricing orders with this provision. Rate is per 1,000 somatic cell count difference fro

counts below 350,000 result in a positive adjustment and a higher payment. Counts above 350,000 result in a lower payment. 5/ Beginning with the prices for April 2003, the new formulas in the Final Decision dated November 7, 2002 are being used. 
Northeast Suffolk Co., MA Boston $3.25 New York City, $3.15; Philadephia, $3.05; Baltimore, $3.00; and Washington, DC, $3.00.

Appalachian Mecklenburg Co., NC Charlotte $3.10 Knoxville, $2.80; and Louisville, $2.20.

Southeast Fulton Co., GA Atlanta $3.10 New Orleans, $3.60; Memphis, $2.80; Nashville, $2.60; and Springfield, MO., $2.20.

Florida Hillsborough Co., FL Tampa $4.00 Orlando, $4.00; Miami, $4.30; and Jacksonville, $3.70.

Mideast Cuyahoga Co., OH Cleveland $2.00 Indianapolis, $2.00; Cincinnati, $2.20; Pittsburgh, $2.10; and Detroit, $ 1.80.

Upper Midwest Cook Co., IL Chicago $1.80 Milwaukee, $1.75; and Minneapolis, $1.70.

Central Jackson Co., MO Kansas City $2.00 Des Moines, $1.80; Omaha, $1.85; Oklahoma City, $2.60; St. Louis, $2.00; and Denver, $2.55.

Southwest Dallas Co., TX Dallas $3.00 Houston, $3.60; San Antonio, $3.45; Albuquerque, $2.35; and El Paso, $2.25.

Arizona-Las Vegas Maricopa Co., AZ Phoenix $2.35 Las Vegas, $2.00.

Western Salt Lake Co., UT Salt Lake City $1.90 Boise, $1.60.

Pacific Northwest King Co., WA Seattle $1.90 Portland, $1.90; and Spokane, $1.90.

Other Major Cities in the Order

Table 33--Federal Milk Order Principal Pricing Points, with Class I Differentials

Federal Milk Order Principal Pricing Point

Major City in 

Principal Pricing 

Point

Class I Differential for:

Principal 

Pricing Point
Northeast 001 9.92 9.45 9.29 9.17 9.16 9.17 9.17 10.32 12.76 13.68 13.5

Appalachian 005 9.77 9.30 9.14 9.02 9.01 9.02 9.02 10.17 12.61 13.53 13.4Southeast 007 9.77 9.30 9.14 9.02 9.01 9.02 9.02 10.17 12.61 13.53 13.4Florida 006 10.67 10.20 10.04 9.92 9.91 9.92 9.92 11.07 13.51 14.43 14.3Mideast 033 8.67 8.20 8.04 7.92 7.91 7.92 7.92 9.07 11.51 12.43 12.3Upper Midwest 030 8.47 8.00 7.84 7.72 7.71 7.72 7.72 8.87 11.31 12.23 12.1Central 032 8.67 8.20 8.04 7.92 7.91 7.92 7.92 9.07 11.51 12.43 12.3Southwest 126 9.67 9.20 9.04 8.92 8.91 8.92 8.92 10.07 12.51 13.43 13.3Arizona-Las Vegas 131 9.02 8.55 8.39 8.27 8.26 8.27 8.27 9.42 11.86 12.78 12.6Western 135 8.57 8.10 7.94 7.82 7.81 7.82 7.82 8.97 11.41 12.33 12.2Pacific Northwest 124 8.57 8.10 7.94 7.82 7.81 7.82 7.82 8.97 11.41 12.33 12.2

9.36 8.89 8.73 8.61 8.59 8.61 8.60 9.75 12.19 13.11 13.0

Table 34-Class I Skim Milk Price, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL AUG SEP

1/ See Table 33 for principal pricing points of markets. All averages are weighted using the applicable pounds of skim milk in producer milk used in Class I products.

OCT NO

Dollars per Hundredweight

All Markets Combined
Northeast 001 1.2109 1.2458 1.1699 1.1552 1.1787 1.1825 1.1915 1.2179 1.3269 1.2332 1.

Appalachian 005 1.2094 1.2443 1.1684 1.1537 1.1772 1.1810 1.1900 1.2164 1.3254 1.2317 1.Southeast 007 1.2094 1.2443 1.1684 1.1537 1.1772 1.1810 1.1900 1.2164 1.3254 1.2317 1.Florida 006 1.2184 1.2533 1.1774 1.1627 1.1862 1.1900 1.1990 1.2254 1.3344 1.2407 1.Mideast 033 1.1984 1.2333 1.1574 1.1427 1.1662 1.1700 1.1790 1.2054 1.3144 1.2207 1.Upper Midwest 030 1.1964 1.2313 1.1554 1.1407 1.1642 1.1680 1.1770 1.2034 1.3124 1.2187 1.Central 032 1.1984 1.2333 1.1574 1.1427 1.1662 1.1700 1.1790 1.2054 1.3144 1.2207 1.Southwest 126 1.2084 1.2433 1.1674 1.1527 1.1762 1.1800 1.1890 1.2154 1.3244 1.2307 1.Arizona-Las Vegas 131 1.2019 1.2368 1.1609 1.1462 1.1697 1.1735 1.1825 1.2089 1.3179 1.2242 1.Western 135 1.1974 1.2323 1.1564 1.1417 1.1652 1.1690 1.1780 1.2044 1.3134 1.2197 1.Pacific Northwest 124 1.1974 1.2323 1.1564 1.1417 1.1652 1.1690 1.1780 1.2044 1.3134 1.2197 1.

1.2058 1.2407 1.1648 1.1501 1.1736 1.1775 1.1864 1.2128 1.3217 1.2281 1.

Table 35--Class I Butterfat Price, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR

All Markets Combined1/ See Table 33 for principal pricing points of markets. All averages are weighted using the applicable pounds of butterfat in producer milk used in Class I products.

AUG SEP OCT N

Dollars per Pound

MAY JUN JUL 
Northeast 001 13.81 13.48 13.06 12.89 12.96 12.99 13.02 14.22 16.96 17.52 17.6

Appalachian 005 13.66 13.33 12.91 12.74 12.81 12.84 12.87 14.07 16.81 17.37 17.4Southeast 007 13.66 13.33 12.91 12.74 12.81 12.84 12.87 14.07 16.81 17.37 17.4Florida 006 14.56 14.23 13.81 13.64 13.71 13.74 13.77 14.97 17.71 18.27 18.3Mideast 033 12.56 12.23 11.81 11.64 11.71 11.74 11.77 12.97 15.71 16.27 16.3Upper Midwest 030 12.36 12.03 11.61 11.44 11.51 11.54 11.57 12.77 15.51 16.07 16.1Central 032 12.56 12.23 11.81 11.64 11.71 11.74 11.77 12.97 15.71 16.27 16.3Southwest 126 13.56 13.23 12.81 12.64 12.71 12.74 12.77 13.97 16.71 17.27 17.3Arizona-Las Vegas 131 12.91 12.58 12.16 11.99 12.06 12.09 12.12 13.32 16.06 16.62 16.7Western 135 12.46 12.13 11.71 11.54 11.61 11.64 11.67 12.87 15.61 16.17 16.2Pacific Northwest 124 12.46 12.13 11.71 11.54 11.61 11.64 11.67 12.87 15.61 16.17 16.2

13.25 12.92 12.50 12.33 12.40 12.43 12.46 13.66 16.39 16.95 17.0

Table 36--Class I Milk Price, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUL 

1/ See Table 33 for principal pricing points of markets. All averages are weighted using the applicable pounds of milk in producer milk used in Class I products.

AUG SEP OCT NO

Dollars per Hundredweight

All Markets Combined

JUN
Appalachian 005 9.07 8.69 8.31 8.29 8.33 8.24 8.59 9.52 11.52 12.15 

Southeast 007 8.80 8.49 8.15 8.06 8.21 8.18 8.57 9.55 11.62 12.13 Florida 006 10.32 9.79 9.57 9.23 9.33 9.23 9.58 10.56 12.94 13.78 Arizona-Las Vegas 131 7.05 6.83 6.49 6.54 6.64 6.63 7.59 8.89 9.98 10.29 

8.84 8.47 8.14 8.07 8.16 8.11 8.57 9.59 11.51 12.09 

Table 37--Uniform Skim Milk Price, by Federal Milk Order Marketing Area, 2003 1/

Dollars per Hundredweight

FEB MAY JUN SEP JUL 

AUG

1/ Information is shown for those orders that use the skim milk/butterfat pricing system for paying producers. See Table 33 for principal pricing points of markets. All aapplicable skim milk pounds in total producer milk receipts.

OCT 

All Markets Combined

Federal Milk Order 

Marketing Area

Order 

Number JAN MAR APR
Appalachian 005 1.1970 1.1822 1.1563 1.1539 1.1638 1.1688 1.2008 1.2376 1.2715 1.2477 1.2

Southeast 007 1.1952 1.1782 1.1551 1.1527 1.1623 1.1681 1.2004 1.2359 1.2673 1.2470 1.2Florida 006 1.2052 1.1995 1.1652 1.1588 1.1713 1.1765 1.2048 1.2403 1.2876 1.2501 1.2Arizona-Las Vegas 131 1.1891 1.1551 1.1493 1.1508 1.1561 1.1622 1.2026 1.2448 1.2431 1.2503 1.2

1.1963 1.1789 1.1560 1.1537 1.1631 1.1686 1.2016 1.2386 1.2678 1.2481 1.2

Dollars per Pound

Table 38--Uniform Butterfat Price, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN MAR AUG SEP

1/ Information is shown for those orders that use the skim milk/butterfat pricing system for paying producers. See Table 33 for principal pricing points of markets. All a

applicable butterfat pounds in total producer milk receipts.

APR MAY JUN JUL OCT N

All Markets Combined

FEB
Northeast 001 2.41 2.13 2.32 2.04 1.89 1.91 0.68 -0.08 0.71 0.82 

Mideast 033 1.27 1.06 1.25 1.06 0.92 0.88 -0.10 -1.20 -0.37 -0.14 Upper Midwest 030 0.58 0.47 0.54 0.46 0.40 0.38 -0.41 -1.58 -1.07 -0.88 -Central 032 0.89 0.75 0.97 0.81 0.70 0.69 -0.29 -1.28 -0.38 -0.16 Southwest 126 2.10 1.76 1.99 1.78 1.59 1.58 0.23 -0.87 0.18 0.50 Western 135 0.71 0.63 0.77 0.54 0.48 0.49 -0.34 -1.70 -0.90 -0.63 -Pacific Northwest 124 0.98 0.78 1.02 0.80 0.67 0.62 -0.85 -2.14 -1.76 -1.34 -All Markets Combined 1.34 1.15 1.34 1.15 1.02 1.00 0.09 -0.91 -0.13 0.07 

MAY JUN JUL 

AUG SEP OCT N

Dollars per Hundredweight

1/ Information is shown for those orders that use the component pricing system for paying producers. See Table 33 for principal pricing points of markets. All averages apounds of total producer milk receipts.

Table 39--Producer Price Differential, by Federal Milk Order Marketing Area, 2003 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR
Northeast 001 12.19 11.79 11.43 11.45 11.60 11.66 12.46 13.72 15.01 15.21 1

Appalachian 005 12.94 12.52 12.07 12.04 12.11 12.04 12.49 13.52 15.57 16.09 1Southeast 007 12.68 12.32 11.91 11.81 11.99 11.98 12.47 13.54 15.65 16.07 1Florida 006 14.18 13.65 13.31 12.96 13.10 13.02 13.46 14.53 16.99 17.67 1Mideast 033 11.05 10.72 10.36 10.47 10.63 10.63 11.68 12.60 13.93 14.25 1Upper Midwest 030 10.36 10.13 9.65 9.87 10.11 10.13 11.37 12.22 13.23 13.51 1Central 032 10.67 10.41 10.08 10.22 10.41 10.44 11.49 12.52 13.92 14.23 1Southwest 126 11.88 11.42 11.10 11.19 11.30 11.33 12.01 12.93 14.48 14.89 1Arizona-Las Vegas 131 10.97 10.63 10.29 10.34 10.45 10.47 11.53 12.94 13.98 14.31 1Western 135 10.49 10.29 9.88 9.95 10.19 10.24 11.44 12.10 13.40 13.76 1Pacific Northwest 124 10.76 10.44 10.13 10.21 10.38 10.37 10.93 11.66 12.54 13.05 1All Markets Combined 11.39 11.04 10.69 10.76 10.92 10.93 12.00 13.04 14.46 14.81 1

AUG SEP OCT Federal Milk Order Marketing Area Order Number JAN FEB

Dollars per Hundredweight

1/ For those orders that use the component pricing system for paying producers (orders 1, 30, 32, 33, 124, 126, and 135), the figures are the statistical uniform price (the suand the Class III price). For those orders that use the skim milk/butterfat pricing system for paying producers (orders 5, 6, 7, and 131), the figures are the uniform price (thtimes 3.5 and the uniform skim milk price times 0.965). Figures are shown at 3.5 percent butterfat; see Table 33 for principal pricing points of markets. All averages are wof total producer milk receipts.

Table 40--Uniform Milk Price, by Federal Milk Order Marketing Area, 2003 1/

MAR APR MAY JUN JUL 

N
Northeast 001 4.48 7.15 0.07 1.59 --- --- 

Appalachian 005 4.44 --- --- --- --- 9.25 Southeast 007 4.42 --- --- --- --- 9.16 Florida 006 4.37 --- --- --- --- 10.40 Mideast 033 4.46 7.25 0.07 0.65 8/ --- 

Upper Midwest 030 4.50 7.18 0.07 0.22 0.03 --- Central 032 4.45 7.23 0.07 0.51 0.02 --- Southwest 126 4.38 7.20 0.07 1.32 0.03 --- Arizona-Las Vegas 131 4.34 --- --- --- --- 7.54 Western 135 4.36 7.23 0.07 0.35 --- --- Pacific Northwest 124 4.43 7.23 0.07 0.12 --- --- 7/ The skim milk value is the annual average uniform skim price for the month (see Table 37) times the order’s annual average proportion o

100 pounds of producer milk (1 minus the order’s annual average butterfat test; see table 8).6/ The somatic cell adjustment value is the annual average of the somatic cell adjustment rate (see Table 32) times the difference between 3

annual average somatic cell count for all producer milk under the order (see Table 12).5/ The producer price differential is the annual average producer price differential for the order (see Table 39).

8/ Less than $0.005.2/ For those orders using the component pricing system (see 1/); the butterfat value is the annual average Class III butterfat price (see Table 

order’s annual average pounds of butterfat in 100 pounds of producer milk (see Table 8 for butterfat tests). For those orders using the skim pricing system (see 1/); the butterfat value is the annual average uniform butterfat price (see Table 38) times the order’s annual average pou100 pounds of producer milk (see Table 8 for butterfat tests).3/ The protein value is the annual average Class III protein price (see Table 32) times the order’s annual average pounds of protein in 100 p

producer milk (see Table 10 for protein tests).

Dollars

Order Number

4/ The other solids value is the annual average Class III other solids price (see Table 32) times the order’s annual average pounds of other s

pounds of producer milk (see Table 11 for other solids tests).

Butterfat 2/ Protein 3/

Table 41--Value Provided by the Portions of the Uniform Milk Price at Test, by Federal Milk Order Marketing Area, 2003 

1/ For those orders that use the component pricing system for paying producers (orders 1, 30, 32, 33, 124, 126, and 135), the uniform milk p

sum of the values of the butterfat, protein, and other solids components and the producer price differential. Orders 30, 32, 33, and 126 also adjustment for the somatic cell count in producer milk. For those orders that use the skim milk/butterfat pricing system for paying produceand 131), the uniform milk price at test is the sum of the values of butterfat and skim milk.

Producer Price 

Differential 5/

Somatic Cell 

Adjustment 6/ Skim Milk 7

Other Solids 4/ Federal Milk Order Marketing Area
Federal Milk Order Order Uniform Milk

Marketing Area Number Price at Test 2/ All Producers Per Producer

Dollars per Cwt. 1,000 Dollars Dollars

Northeast 001 13.29 3,195,804 198,325

Appalachian 005 13.69 864,674 237,417

Southeast 007 13.58 960,316 224,320

Florida 006 14.77 418,470 1,404,261

Mideast 033 12.44 1,958,684 188,771

Upper Midwest 030 12.00 2,041,906 153,434

Central 032 12.28 1,770,323 233,183

Southwest 126 13.00 1,193,036 1,384,033

Arizona-Las Vegas 131 11.88 363,788 3,431,958

Western 135 12.01 549,000 778,724

Pacific Northwest 124 11.85 750,671 907,704

All Markets Combined 12.72 14,066,672 242,066

at test.

of producer milk receipts plus the producer price differential. For skim/buttermilk pricing orders (see 1/),

equals the sum of the uniform skim milk price times (1 minus (the butterfat test of producer milk receipts divided by 100))

plus (the uniform butterfat price times (the butterfat test of producer milk receipts).

58

and Per Producer, by Federal Milk Order Marketing Area, 2003

Table 42--Uniform Milk Price at Test and Gross Value of Producer Milk Receipts for All Producers

Gross Value of Milk Receipts 1/

1/ For component pricing orders (orders 1, 30, 32, 33, 124, 126, and 135), the sum of the value of producer

milk components and the value of the producer price differential. For skim/butterfat pricing orders

(orders 5, 6, 7, and 131), the product of producer milk receipts in hundredweights (cwts.), and the uniform price 

2/ For component pricing orders (see 1/), equals the Class III price adjusted to the applicable component test
59

SUMMARY OF FLUID MILK PRODUCT SALES 

Two different data series of fluid milk product sales are shown in this section. The first data series shows 

the volume of packaged fluid milk products sold in a specific order’s marketing area. This volume could 

include handlers regulated under the order whose marketing area is listed, handlers regulated under other 

Federal orders, and handlers not regulated under any Federal milk order. The second data series presents 

the volume of packaged fluid milk products produced by handlers regulated under the specific Federal milk 

order listed. This production may be distributed in the marketing area of the Federal order under which the 

handler is regulated, in the marketing area of another Federal order, or in an area that is outside any Federal 

milk order marketing area. 

Almost 45 billion pounds of packaged fluid milk products were sold in all Federal milk order marketing 

areas in 2003. This volume was more than 81 percent of all the packaged fluid milk products sold in the 

United States. As a side note, slightly more than 81 percent of the total population in the U.S. resides in 

Federal milk order marketing areas. The proportion of total in-area sales by source was: handlers 

regulated under the specific order, 90%; handlers regulated under other Federal orders, 7%; and, handlers 

not regulated under any Federal milk order, 3%. For all Federal milk order marketing areas combined, 

more whole milk is sold than any other fluid milk product. Whole milk sales totaled 14.5 billion pounds 

versus 14.3 billion pounds for reduced fat (2%) milk. However, in six of the eleven individual Federal milk 

order marketing areas, more reduced fat (2%) milk was sold than whole milk. 

For all Federal milk order marketing areas combined, per capita sales of fluid milk products in 2003 was 

189 pounds, about 22.0 gallons. The order with the highest volume of per capita in-area sales was the 

Western order, 249 pounds, 29.0 gallons. The Southeast order had the smallest per capita sales, 164 

pounds, 19.1 gallons. Orders with above-average per capita sales included; Pacific Northwest, Upper 

Midwest, Central, and Mideast. 

Nearly 46 billion pounds of packaged fluid milk products were produced by the handlers regulated under 

the Federal milk order program in 2003. This volume was slightly less than 83 percent of all the packaged 

fluid milk products produced in the United States in that year. The fluid milk product with the largest 

volume was reduced fat milk (2% milk), 14.62 billion pounds, followed closely by whole milk with 14.61 

billion pounds. These two products accounted for about 64 percent of the total fluid milk products 

produced by regulated handlers. The order with the largest volume of packaged fluid milk production was 

the Northeast, 10.7 billion pounds, nearly 66 percent larger than the next biggest volume, 6.4 billion pounds 

in the Mideast order. 
Federal Milk Order Order JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Marketing Area Number

Northeast 001 841 778 820 788 826 750 754 768 801 834 791 855 9,606

Appalachian 005 314 268 285 278 290 264 282 299 300 307 266 299 3,452

Southeast 007 440 390 412 401 408 366 375 400 400 414 391 412 4,809

Florida 006 260 234 256 242 240 220 227 239 234 245 237 254 2,888

Mideast 033 574 509 542 519 541 478 497 518 525 543 522 549 6,317

Upper Midwest 030 388 348 376 360 373 328 343 349 370 385 366 378 4,364

Central 032 414 373 394 390 391 350 364 387 394 411 386 405 4,660

Southwest 126 378 330 350 348 355 318 335 350 353 374 340 356 4,187

Arizona-Las Vegas 131 117 105 110 109 110 99 105 109 108 113 107 114 1,303

Western 135 78 70 74 72 76 66 72 73 74 81 76 81 893

Pacific Northwest 124 190 169 186 181 186 166 173 175 178 189 180 185 2,159

All Markets Combined 3,992 3,572 3,806 3,689 3,795 3,406 3,527 3,667 3,737 3,897 3,661 3,888 44,638

1/ These figures are representative of the consumption of fluid milk products in Federal milk order marketing areas. Fluid milk products include: plain and flavored whole milk,

eggnog, plain and flavored fat-reduced milk, buttermilk, and miscellaneous fluid milk products.

2/ All Markets Combined and TOTAL may not add due to rounding.

Table 43--Summary of Packaged Sales of Fluid Milk Products in Federal Milk Order Marketing Areas, by Months, 2003 1/ 2/

Million Pounds
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Whole milk products 2/ 15,546.5 3.30 4,039.5 3.26 1,333.8 3.30  Whole milk 14,503.7 3.26 3,876.8 3.23 1,243.7 3.26  Flavored whole milk 896.9 3.42 123.2 3.31 79.2 3.43  Eggnog 124.7 6.63 33.2 6.40 8.7 7.09 Fat-reduced milk products 2/ 29,091.2 1.28 5,566.1 1.15 2,118.4 1.35  Reduced fat milk (2%) 14,297.6 1.97 2,049.9 1.98 1,150.0 1.98  Low fat milk (1%) 5,030.8 0.98 1,593.5 1.00 202.0 1.05  Fat-free milk (skim) 6,531.1 0.11 1,425.3 0.09 432.9 0.13  Flavored fat-reduced milk 2,677.8 1.06 462.3 1.18 197.2 1.05  Buttermilk 452.2 1.29 32.7 1.26 69.1 1.13 Total fluid milk products 2/ 44,637.7 1.98 9,605.6 2.04 3,452.2 2.10 

Total Sales

Northeast Appalachian

Total Sales Total Sales Butterfat Content

See footnotes on page 63.

Product Name

Table 44--Sales of Fluid Milk Products in Federal Milk Order Marketing Areas, by Product, by Order, 2003 1

Butterfat 

Content

Butterfat 

Content

T

All Markets Combined

61
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Whole milk products 2/ 1,316.5 3.31 1,655.8 3.30 797.7 3.33  Whole milk 1,232.0 3.28 1,504.4 3.26 699.7 3.28  Flavored whole milk 71.0 3.44 134.1 3.50 81.6 3.33  Eggnog 9.8 7.19 16.4 6.06 12.8 6.32 Fat-reduced milk products 2/ 1,571.8 1.21 4,660.8 1.37 3,567.1 1.17  Reduced fat milk (2%) 728.1 1.96 2,632.9 1.96 1,605.0 1.97  Low fat milk (1%) 279.0 1.00 601.4 0.85 562.5 0.98  Fat-free milk (skim) 414.8 0.13 914.8 0.11 1,032.4 0.10  Flavored fat-reduced milk 133.3 0.95 457.8 1.09 331.7 0.93  Buttermilk 16.6 1.04 53.3 1.66 29.1 1.09 Total fluid milk products 2/ 2,888.3 2.17 6,316.6 1.87 4,364.1 1.56 

Total Sales 

Butterfat Content Total Sales Butterfat Content T

See footnotes on page 63.

Table 44--Sales of Fluid Milk Products in Federal Milk Order Marketing Areas, by Product, by Order, 2003 1/--C

Product Name

Florida Mideast Upper Midwest 

Total Sales Butterfat Content

62
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Whole milk products 2/ 2,029.4 3.32 468.9 3.29 170.3 3.38  Whole milk 1,895.0 3.29 439.6 3.27 159.3 3.27  Flavored whole milk 131.4 3.69 24.0 2.98 7.1 3.66  Eggnog 0.6 7.23 5.3 6.27 3.8 7.51 Fat-reduced milk products 2/ 2,157.5 1.36 833.7 1.38 722.3 1.38  Reduced fat milk (2%) 1,148.3 1.89 471.6 1.96 359.2 1.99  Low fat milk (1%) 355.0 1.03 136.2 0.97 176.3 1.00  Fat-free milk (skim) 336.6 0.10 160.2 0.09 117.3 0.17  Flavored fat-reduced milk 255.8 1.06 55.0 1.23 62.1 1.24  Buttermilk 50.4 1.53 10.3 1.06 6.9 1.08 Total fluid milk products 2/ 4,186.9 2.31 1,302.6 2.07 892.6 1.76 

Butterfat 

Content Total Sales Butterfat Content T

Table 44--Sales of Fluid Milk Products in Federal Milk Order Marketing Areas, by Product, by Order, 2003 1/--C

Product Name

Southwest Arizona-Las Vegas 3/ Western 

Total Sales Butterfat Content Total Sales

3/ The in-area sales data for this order does not include all the sales in the marketing area due to the reporting exemptionof the fluid milk processor located in Clark County, Nevada.1/ Includes sales in each area by handlers regulated under the respective order, by handlers regulated under other orders, by partially

regulated handlers, by exempt handlers, and by producer-handlers. (See page 6 for the definitions of these handler types.) Sales routesof some handlers may extend outside defined marketing areas; therefore some in-area sales may be partially estimated.2/ May include miscellaneous fluid milk products.

63
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Whole milk 14,607.7 3.27 3,957.0 3.26 1,621.9 3.26 Flavored whole milk 941.0 3.40 230.9 3.18 71.7 3.54 Eggnog 128.2 6.60 40.2 6.40 10.4 6.92 Reduced fat milk (2%) 14,617.6 1.96 2,297.4 1.98 1,463.3 1.98 Low fat milk (1%) 5,170.7 0.98 1,753.4 1.01 257.3 1.04 Fat-free milk (skim) 6,702.3 0.11 1,631.8 0.09 537.9 0.14 Flavored fat-reduced milk 2,699.5 1.08 518.1 1.23 228.0 1.01 Buttermilk 452.8 1.28 28.7 1.09 89.0 1.09 Miscellaneous milk products 372.7 2.15 239.4 2.78 71.7 0.52 Total fluid milk products 45,692.5 1.98 10,696.9 2.03 4,351.3 2.12 See footnotes on page 66.

Northeast Appalachian

Volume Volume Butterfat Content Product Name

Table 45--Packaged Dispositions of Class I Milk Products by Handlers Regulated Under Federal Milk Orders, by Product, by 

Butterfat 

Content

Butterfat 

Content

All Markets Combined

Volume

64
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Whole milk 1,087.5 3.28 1,581.2 3.26 634.8 3.25 Flavored whole milk 53.8 3.49 118.6 3.46 68.6 3.27 Eggnog 8.7 7.24 15.2 5.91 10.4 6.29 Reduced fat milk (2%) 628.8 1.96 2,668.3 1.96 1,532.1 1.96 Low fat milk (1%) 247.1 1.01 622.7 0.85 537.8 0.98 Fat-free milk (skim) 358.4 0.14 916.9 0.11 986.7 0.10 Flavored fat-reduced milk 109.2 0.85 465.3 1.10 304.3 0.89 Buttermilk 14.9 1.01 54.3 1.68 28.3 1.10 Miscellaneous milk products 2/ --- 4.5 2.38 16.2 1.65 Total fluid milk products 2,509.1 2.17 6,446.9 1.88 4,119.2 1.53 

See footnotes on page 66.

Butterfat 

Content Volume Butterfat Content 

Table 45--Packaged Dispositions of Class I Milk Products by Handlers Regulated Under Federal Milk Orders, by Product, by Or

Product Name

Florida Mideast Upper Midwest 

Volume Butterfat Content Volume

65
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Whole milk 1,877.0 3.28 299.0 3.25 211.3 3.27 Flavored whole milk 120.7 3.75 23.9 3.00 32.9 3.71 Eggnog 0 --- 5.1 6.20 4.2 7.49 Reduced fat milk (2%) 1,112.8 1.89 356.8 1.95 452.4 1.99 Low fat milk (1%) 345.0 1.03 113.9 0.96 184.1 1.00 Fat-free milk (skim) 326.9 0.11 123.0 0.10 124.3 0.16 Flavored fat-reduced milk 252.1 1.07 45.5 1.24 75.3 1.35 Buttermilk 48.0 1.55 7.1 1.05 8.2 1.07 Miscellaneous milk products 22.5 1.44 2/ --- 2/ --- Total fluid milk products 4,104.9 2.31 974.5 2.01 1,092.7 1.89 

Butterfat 

Content Volume Butterfat Content 

Table 45--Packaged Dispositions of Class I Milk Products by Handlers Regulated Under Federal Milk Orders, by Product, by Or

Product Name

Southwest Arizona-Las Vegas Western 

Volume Butterfat Content Volume

2/ Restricted, represents sales by fewer than three handlers. Figures are included in the total for the market.1/ Includes product distributed both in and out of the respective Federal milk order marketing area. Besides receipts from producers, these

dispositions also may include receipts from other Federal order plants and/or receipts from other sources.

66
67

SUMMARY OF MILK USED TO PRODUCE MANUFACTURED PRODUCTS 

The statistics shown in this section differ from those shown in the Quantities and Utilization of Milk Priced 

section. In addition to producer milk used in each class, this section also includes “other source” milk, milk and 

dairy products received from other order plants or unregulated plants. 

During 2003, nearly 65.9 billion pounds of milk, skim milk, and cream that were used to produce Class II, III, 

and IV products were handled by milk processors regulated under the Federal milk order program. This volume 

was either processed in their own plants, or transferred or diverted to unregulated nonpool plants for processing. 

On a whole-milk-equivalent basis, 45.9 percent of this volume was used in Class III products, 34.6 percent in 

Class II, 19.3 percent in Class IV, and 0.2 percent in other uses (milk and dairy products that were dumped, 

used for animal feed, or destroyed). 

There were 15.1 billion pounds of milk, skim milk, and cream used to produce Class II products in 2003. The 

butterfat test of this volume was 7.25 percent. On a volume basis, the largest Class II volume was used in 

frozen desserts, 5.7 billion pounds with a 8.94 percent butterfat content, followed by cottage cheese, 3.3 billion 

pounds with a 1.72 percent butterfat content. On a whole-milk-equivalent basis, both fluid cream products and 

sour cream products use would have been larger than cottage cheese. On an individual order basis, those orders 

with larger populations had higher Class II volumes, with the exception of the Southeast order. 

Class III production accounted for 38.6 billion pounds of milk, skim milk, and cream which had a butterfat test 

of 3.77 percent. The largest Class III volume was used in American cheese, 16.1 billion pounds with a 3.75 

percent butterfat content, followed by Italian cheese, 12.1 billion pounds with a 3.23 percent butterfat content. 

The order with the largest volume of Class III production was the Upper Midwest, 10.1 billion pounds, followed 

by the Central order with 6.9 billion pounds. These two orders accounted for nearly 44 percent of total Class III 

production in all Federal milk orders. 

 

There were 11.8 billion pounds of milk, skim milk, and cream used to produce Class IV products in 2003. The 

butterfat content of this volume was 5.17 percent. The Class IV product with the largest volume was nonfat dry 

milk; the product with the largest whole-milk-equivalent was butter. The order with the largest volume used to 

produce Class IV products was the Pacific Northwest, 2.4 billion pounds. About 0.3 billion pounds of milk, 

skim milk, and cream were used in “other uses” in 2003. This use would have been Class III in January through 

June; Class IV in July through December. 
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percen

Northeast 001 909.9 16.66 274.0 13.39 963.3 1.87 1,475.5 7.83 492.6 1.54 Appalachian 005 75.1 21.76 24.9 15.59 205.9 5.49 426.6 7.33 26.4 0.70 Southeast 007 33.5 23.98 16.1 16.83 70.5 0.80 570.0 8.33 5/ --- Florida 006 59.0 18.28 5/ --- 5/ --- 167.6 12.10 5/ --- 

.

Mideast 033 103.2 25.67 125.6 11.98 622.9 2.46 976.8 9.07 627.8 2.10 Upper Midwest 030 222.0 16.08 123.2 15.02 194.0 1.34 407.4 10.31 98.8 2.91 Central 032 77.8 20.90 84.7 16.15 599.9 0.78 641.5 9.62 139.8 0.75 Southwest 126 122.9 18.90 200.4 12.40 131.0 0.85 651.8 7.48 158.9 1.47 Arizona-Las Vegas 131 20.0 15.75 5/ --- 5/ --- 91.1 19.31 0 --- Western 135 26.6 20.26 18.5 15.49 196.6 0.47 138.7 11.10 33.0 0.56 Pacific Northwest 124 90.6 21.24 48.8 11.96 178.6 0.49 117.4 15.08 81.2 0.77 All Markets Combined 1,740.6 18.17 935.9 13.56 3,255.7 1.72 5,664.6 8.94 1,716.6 1.65 4/ Includes listed product groupings, miscellaneous cream products, "other" food products, and restricted data per 5/.5/ Data are restricted; pertains to the operations of fewer than three handlers. Data are included in the "All Markets Combined" figure for the product grouping.

1/ Includes producer milk and other source milk used to produce these products in regulated pool plants as well as milk diverted or transferred to non-order plants where these products are manufactured.2/ Includes milk and cream mixtures, light cream, and heavy cream.3/ Includes ricotta cheese.

Table 46--Milk, Skim Milk, and Cream Used to Produce Class II Products, by Handlers Regulated Under Federal Milk Orders, by Product Grouping, by Ord

Butterfat 

Content

Butterfat 

Content

Butterfat 

Content

Butterf

Conten

Federal Milk Order 

Marketing Area

Order 

Number

Frozen Desserts Yogurt 

Volume Volume

Fluid Cream Products 2/

Volume

Sour Cream Products Cottage Cheese 3/

Butterfat Content Volume Volume

68
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Northeast 001 2,026.5 3.56 3,570.8 3.08 583.6 10.84 306.9 2.88 Appalachian 005 3/ 221.7 7.30 4/ --- 0 --- 4/ --- Southeast 007 1,146.5 4.4 0 --- 0 --- 0 --- Florida 006 78.6 5.1 0 --- 0 --- 0 --- Mideast 033 1,146.5 3.11 2,834.4 2.99 0 --- 1,743.2 4.43 Upper Midwest 030 5,637.9 3.74 2,386.6 3.60 0 --- 1,251.7 4.07 Central 032 2,950.4 3.76 3,299.9 3.33 38.4 17.08 493.9 4.21 Southwest 126 2,025.9 3.36 0 --- 5/ --- 5/ --- Arizona-Las Vegas 131 6/ --- 0 --- 0 --- 7/ 1,128.5 5.23 Western 135 155.1 3.88 6/ --- 6/ --- 7/ 2,403.4 3.47 Pacific Northwest 124 679.9 4.18 6/ --- 0 --- 7/ 1,075.5 3.64 All Markets Combined 3/ 16,069.0 3.75 12,091.7 3.23 622.0 11.23 7/ 8,403.1 4.04 

5/ Data are restricted; pertains to the operations of fewer than three firms. Data are included in "Total Class III."

Federal Milk Order 

Marketing Area

Order 

Number

Table 47--Milk, Skim Milk, and Cream Used to Produce Class III Products, by Handlers Regulated Under Federal Milk Orders, by Product Grouping, by Or

Butterfat 

Content

Butterfat 

Content

Butterfat 

Content

Butterfat 

Content

Other Cheese 

Volume 

American Cheese

Volume

Italian Cheese Cream Cheese

Volume Volume

6/ Data are restricted; pertains to the operations of fewer than three firms. Data are included in "Other" cheese.4/ Data are restricted; pertains to the operations of fewer than three firms. Data are included in American cheese.7/ Includes small volumes of American, Italian, and/or cream cheese; see 6/.1/ Includes producer milk and other source milk used to produce these products in regulated pool plants as well as milk diverted or transferred to non-order plants where these prare manufactured.2/ Includes listed cheeses, evaporated or sweetened condensed milk in consumer-type packages, and restricted data per 5/.3/ Includes small volumes of Italian and/or "Other" cheeses; see 4/.

69
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Northeast 001 202.8 48.09 1,716.3 0.07 200.9 5.64 2,202.7 5.00 Appalachian 005 48.3 34.70 59.6 1.80 4/ --- 120.6 14.79 Southeast 007 224.4 15.98 4/ --- 0 --- 321.9 11.15 Florida 006 5/ --- 0 --- 0 --- 42.8 13.64 Mideast 033 177.1 36.81 473.8 0.10 72.5 8.99 740.8 9.75 Upper Midwest 030 480.5 19.32 1,091.0 0.06 274.9 0.11 1,862.8 5.03 Central 032 106.5 37.48 839.2 4.05 0 --- 955.0 7.74 Southwest 126 485.4 12.62 1,345.8 0.15 4/ --- 1856.80 3.50 Arizona-Las Vegas 131 40.3 37.44 4/ --- 4/ --- 891.3 1.76 Western 135 78.0 33.58 4/ --- 0 --- 487.9 5.74 Pacific Northwest 124 223.1 41.41 4/ --- 0 --- 2,350.6 3.98 All Markets Combined 3/ 2,066.5 26.27 8,958.1 0.48 560.8 3.53 11,833.2 5.17 

5/ Data are restricted; pertains to the operations of fewer than three firms. Data are included in "Total Class IV".

Federal Milk Order 

Marketing Area

Order 

Number

Table 48--Milk, Skim Milk, and Cream Used to Produce Class IV Products, by Handlers Regulated Under Federal Milk Orders, by Product Grouping, by Or

Butterfat 

Content

Butterfat 

Content

Butterfat 

Content

Butterfat 

Content

Total Class V 2/ 

Volume 

Butter

Volume

Nonfat Dry Milk Other Dry Milk

Volume Volume

4/ Data are restricted; pertains to the operations of fewer than three firms. Data are included in the "All Areas Combined" figure for the product grouping.1/ Includes producer milk and other source milk used to produce these products in regulated pool plants as well as milk diverted or transferred to non-order plants where these prare manufactured.2/ Includes listed product groupings, nonfat solids used to fortify fluid milk products, and restricted data per 4/ and 5/.3/ Milk and dairy products that have been dumped, used for animal feed, or destroyed. Such uses are assigned to the lowest prices for the month: Class III in January through JuClass IV in July through December.

70
71

ERRATA to 2002 ANNUAL SUMMARY of FEDERAL MILK ORDER MARKET STATISTICS 

The following items are corrections to the 2002 Annual Summary of Federal Milk Order Market Statistics. 

Summary of Class and Producer Prices and Gross Values

The last paragraph should have read: The gross value of producer milk receipts under the Federal order 

program in 2002 was $15.3 billion, about 74 percent of the cash receipts from all milk marketings in the 

country. This figure was computed for each order using the applicable minimum component prices 

adjusted to the actual component tests of producer milk receipts. On an individual order basis, the gross 

value of producer milk receipts was the highest in the Northeast order, followed next by the Upper Midwest 

order. Per producer, the gross value of producer milk receipts averaged $239,520. Producers in the 

Arizona-Las Vegas order had a gross value of more than $3.2 million each, more than twice as much as the 

next largest per producer gross value in the Southwest order. On the other end of the scale, producers in 

the Upper Midwest order had a gross value of $160,361 each. 

Table 41

For the Northeast marketing area, the gross value of milk receipts for all producers and per producer should 

have read $3,266,246 and $193,544, respectively. For All Markets Combined, the gross value of milk 

receipts for all producers and per producer should have read $15,294,802 and $239,520, respectively. 

Summary of Fluid Milk Product Sales

The second paragraph should have read: Nearly 46 billion pounds of packaged fluid milk product sales 

were produced by the handlers regulated under the Federal milk order program in 2002. This volume was 

about 83 percent of all the packaged fluid milk products produced in the United States in that year. The 

fluid milk product with the largest volume was whole milk, 14.7 billion pounds, followed closely by 

reduced fat milk (2% milk) with 14.6 billion pounds. These two products accounted for about 64 percent 

of the total fluid milk products produced by regulated handlers. The order with the largest volume of 

packaged fluid milk production was the Northeast, 10.7 billion pounds, nearly 66 percent larger than the 

next biggest volume, 6.5 billion pounds in the Mideast order. 

Table 42

The volume and butterfat content figures for Miscellaneous milk products should have read: All Markets 

Combined – 262.8 and 2.48%; Northeast - 180.4 and 3.04%; Central - 3.6 and 1.32%; and Western - 3/ and 

1.83%. The volume and butterfat content figures for Total fluid milk products should have read: All 

Markets Combined – 45,892.4 and 1.98%; Northeast – 10,709.6 and 2.03%; Central – 4,807.2 and 1.81%; 

and Western – 1,059.7 and 1.85%. 

The preceding corrections have been made to the Internet version of the 2002 annual report at: 

www.ams.usda.gov/dyfmos/mib/annsum2002.pdf.