United States

Department of

Agriculture

Marketing and

Regulatory

Programs

Agricultural

Marketing

Service

Dairy Programs

Statistical

Bulletin

Number 1005

Federal Milk Order

Market Statistics

2004 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 2004. Similar data for the period from 1947 through 2003 have been published in 47 

previous annual summaries. 

 For those readers who generally use only the hard copy version of this report, we have made minor corrections to 

the Internet version of the 2003 Annual Summary. The corrections are to Table 1, Summary of Major Order Actions 

During 2003, Table 41, Table 48, and the Errata to 2002 Annual Summary of Federal Milk Order Market Statistics. 

The 2003 Annual Summary can be found at www.ams.usda.gov/dyfmos/mib/annsum2003.pdf. 

 

 Issued September 2005 

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

race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, 

religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s 

income is derived from any public assistance program. (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 to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, 

S.W., Washington, DC, 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (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, 2004, 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, 1947-2004............................................... 11 

Table 3: Population of Federal milk order marketing areas as defined December 31, 2004, 

 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 2004.............................................................................................................. 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 2004................................................................................................................................................. 18 

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

 2004 .................................................................................................................................................................. 19 

Table 6: Receipts of producer milk by handlers regulated under Federal orders, by marketing area, 2004................... 20 

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

 by marketing area, 2004.................................................................................................................................... 21 

Table 8: Butterfat test of producer milk, by Federal milk order marketing area, 2004 .................................................. 22 

 

Table 9: Nonfat solids test of producer milk, by Federal milk order marketing area, 2004 ........................................... 23 

Table 10: Protein (true) test of producer milk, by Federal milk order marketing area, 2004 ......................................... 24 

Table 11: Other solids test of producer milk, by Federal milk order marketing area, 2004 ........................................... 25 

Table 12: Somatic cell count of producer milk, by Federal milk order marketing area, 2004........................................ 26 

Table 13: Utilization of producer milk in Class I products, by Federal milk order marketing area, 2004...................... 27 

Table 14: Class I utilization percentage of producer milk, by Federal milk order marketing area, 2004....................... 28 

 
3

 

 Page 

 Number 

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

 marketing area, 2004 ...................................................................................................................................... 29 

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

 order marketing area, 2004 ............................................................................................................................. 30 

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

 marketing area, 2004 ...................................................................................................................................... 31 

Table 18: Class II utilization percentage of producer milk, by Federal milk order marketing area, 2004...................... 32 

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

 marketing area, 2004 ...................................................................................................................................... 33 

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

 marketing area, 2004 ...................................................................................................................................... 34 

Table 21: Utilization of producer milk in Class III products, by Federal milk order marketing area, 2004................... 35

 

Table 22: Class III utilization percentage of producer milk, by Federal milk order marketing area, 2004 .................... 36

 

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

 order marketing area, 2004 ............................................................................................................................. 37 

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

 marketing area, 2004 ...................................................................................................................................... 38 

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

 marketing area, 2004 ...................................................................................................................................... 39 

Table 26: Utilization of producer milk in Class IV products, by Federal milk order marketing area, 2004................... 40 

 

Table 27: Class IV utilization percentage of producer milk, by Federal milk order marketing area, 2004 .................... 41 

 

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

 marketing area, 2004 ...................................................................................................................................... 42 

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

 marketing area, 2004 ...................................................................................................................................... 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 2004..................................................................................................................... 45 

Table 30: NASS dairy product price averages used in Federal milk order price formulas, 2004................................... 46 

 

Table 31: Federal milk order Class I and Class II advanced prices and pricing factors, 2004 ....................................... 47 
4

Table 32: Federal milk order Class II, Class III, and Class IV milk and component prices, 2004 ................................. 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, 2004............................................................ 50 

Table 35: Class I butterfat price, by Federal milk order marketing area, 2004 .............................................................. 51 

Table 36: Class I milk price, by Federal milk order marketing area, 2004..................................................................... 52 

Table 37: Uniform skim milk price, by Federal milk order marketing area, 2004 ......................................................... 53 

Table 38: Uniform butterfat price, by Federal milk order marketing area, 2004............................................................ 54 

Table 39: Producer price differential, by Federal milk order marketing area, 2004....................................................... 55 

Table 40: Uniform milk price, by Federal milk order marketing area, 2004.................................................................. 56 

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

 Federal milk order marketing area, 2004........................................................................................................ 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, 2004 ..................................................... 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, 2004............................................................................................................................................. 60 

Table 44: Sales of fluid milk products in Federal milk order marketing areas, by product, by order, 2004................... 61

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

 milk orders, by product, by order, 2004.......................................................................................................... 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, 2004.................................................... 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, 2004.................................................... 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, 2004................................................................................................................................................. 70 

VI. Schedule of Federal Milk Order Market Administrator Budgets, Calendar Years 2004 and 2005............. 71 

 

VII. Errata to 2003 Annual Summary of Federal Milk Order Market Statistics.................................................... 73 
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, 2004, 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

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, 2004, 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

2/ areas 2/ 3/ milk 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 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 52004 10 234,825 306 52,341 103,048 44,939 43.6 17.56 15.74 62 61 5

was affected.

plants and

3/ Average for year. The number of producers peaked at 192,947 in 1961.

Prices at 3.5% 

butterfat

content 2/

Receipts as

Table 2--Measures of Growth in Federal Milk Order Markets, Selected Years, 1947-2004 1/

substantially, the volume of producer milk receipts reported for some markets. Consequently, the comparability of any statistic based on total producer milk receipts, as well as the numb

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

dealers

Percentage of

milk sold to

1/ Beginning in 1989, due to disadvantageous price situations in some markets, handlers elected not to pool milk that normally would have been associated with the order. This has red

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.

11
12

Table 3—Population of Federal Milk Order Marketing Areas as Defined December 31, 2004, 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 19,323,951

 Georgia 294,788 317,939 

 Indiana 791,872 812,329 

 Kentucky 2,812,978 2,885,466 

 North Carolina 8,049,313 8,541,221 

 South Carolina 4,012,012 4,198,068 

 Tennessee 2,107,138 2,185,537 

 Virginia 277,768 292,731 

 West Virginia 90,309 90,659 

 

Arizona-Las Vegas 131 Total 6,506,397 7,351,283

 Arizona 5,130,632 5,743,834 

 Nevada 1,375,765 1,607,449 

 

Central 032 Total 22,388,105 23,054,858

 Colorado 4,110,995 4,397,860 

 Illinois 3,688,820 3,776,246 

 Iowa 2,847,413 2,874,782 

 Kansas 2,688,418 2,735,502 

 Minnesota 46,877 48,606 

 Missouri 3,498,817 3,598,498 

 Nebraska 1,586,359 1,619,686 

 Oklahoma 3,450,654 3,523,553 

 South Dakota 402,912 411,473 

 Wisconsin 66,840 68,651 

 

Florida 006 Total 15,359,126 16,718,738

 Florida 15,359,126 16,718,738 

 

Mideast 033 Total 31,379,357 31,846,213

 Indiana 5,288,613 5,425,240 

 Kentucky 685,009 702,661 

 Michigan 9,808,800 9,980,704 

 Ohio 11,118,122 11,221,801 

 Pennsylvania 3,105,740 3,137,411 

 West Virginia 1,373,073 1,378,396 

 

Northeast 001 Total 51,288,677 52,501,603

 Connecticut 3,405,565 3,503,604 

 Delaware 783,600 830,364 

 District of Columbia 572,059 553,523 

 Maryland 5,191,710 5,448,108 

 Massachusetts 6,349,097 6,416,505 

 New Hampshire 1,235,786 1,299,500 

 New Jersey 8,414,350 8,698,879 

 New York 16,275,023 16,489,975 

 Pennsylvania 5,589,144 5,646,140 

 Rhode Island 1,048,319 1,080,632 

 Vermont 608,827 621,394 

 Virginia 1,815,197 1,912,980 

 

 Continued 

 
13

Table 3—Population of Federal Milk Order Marketing Areas as Defined December 31, 2004, 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 9,927,512

 Idaho 213,268 229,636 

 Washington 3,325,743 3,494,088 

 Oregon 5,894,121 6,203,788 

 

Southeast 007 Total 28,482,597 29,612,355

 Alabama 4,447,100 4,530,182 

 Arkansas 2,673,400 2,752,629 

 Florida 623,252 678,423 

 Georgia 7,891,665 8,511,444 

 Kentucky 543,782 557,795 

 Louisiana 4,468,976 4,515,770 

 Mississippi 2,844,658 2,902,966 

 Missouri 1,407,619 1,447,722 

 Tennessee 3,582,145 3,715,425 

 

Southwest 126 Total 22,748,535 24,476,400

 Colorado 77,669 83,089 

 New Mexico 1,819,046 1,903,289 

 Texas 20,851,820 22,490,022 

 

Upper Midwest 030 Total 19,480,685 20,011,968

 Illinois 8,730,473 8,937,388 

 Iowa 78,911 79,669 

 Michigan 129,644 131,916 

 Minnesota 4,872,602 5,052,352 

 North Dakota 294,809 291,213 

 South Dakota 77,411 79,056 

 Wisconsin 5,296,835 5,440,375 

 

 All Areas Combined Total 225,502,789 234,824,881 

 

 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, 2004. 

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 2004 

FEBRUARY

Pacific Northwest – February 1 (69 FR 1654, 1/12/04.) This order amends the Producer milk provision of 

the Pacific Northwest milk marketing order to eliminate the ability to simultaneously pool the same milk on 

the order and on a State-operated order that provides marketwide pooling. 

APRIL

Western – April 1 (69 FR 8327, 2/24/04.) This rule terminates the Western Federal milk marketing order 

effective April 1, 2004. 

MAY

Northeast and Other Marketing Areas – May 1 (69 FR 21950, 4/23/04.) This order amends certain 

classification of milk provisions in all Federal milk marketing orders. Specifically, this interim order 

reclassifies milk used to produce evaporated milk in consumer-type packages or sweetened condensed milk 

in consumer-type packages from Class III to Class IV. 

JULY

Mideast – July 1 (69 FR 34554, 6/22/04.) This final rule adopts order language contained in an interim 

final rule concerning pooling provisions of the order. Specifically, this final rule continues to amend the 

Pool plant provisions which: eliminate automatic pool plant status for the 6-month period of March through 

August, eliminate milk shipments to a distributing plant regulated by another Federal milk order as poolqualifying shipments under the Mideast order, eliminate the “split plant” feature, eliminate including 

diversions made by a pool supply plant located outside the marketing area to a second pool plant, and 

establish a “net shipments” provision for pool supply plants not operated by a cooperative. For the 

Producer milk provisions, this final rule continues amendments which: seasonally adjust and increase the 

number of days that milk of a producer needs to be delivered to a pool plant and establish year-round 

diversion limits, adjusted seasonally, for producer milk for handlers pooled under the Mideast order. 

Pacific Northwest – July 1 (69 FR 34912, 6/23/04). This final rule adopts order language contained in an 

interim final rule concerning pooling provisions of the order. Specifically, this final rule continues to 

amend the Pool plant provision which establishes a “cooperative pool manufacturing plant” provision and 

establishes system pooling for cooperative manufacturing plants. Additionally, this final rule adopts a 

previously amended Producer milk provision which establishes a standard for the number of days during 

the month that the milk of a producer would need to be delivered to a pool plant in order for the rest of the 

milk of that producer to be eligible to be diverted to nonpool plants. A year-round diversion limit of 80 

percent of total receipts for pool plants previously established and authority granted to the market 

administrator to adjust the touch-base standard is adopted on a permanent basis. 
16

DECEMBER

Northeast and Other Marketing Areas – December 1 (69 FR 68764, 11/26/04). This final rule adopts order 

language contained in an interim final rule concerning classification of milk use provisions in all Federal 

milk marketing orders; see MAY on previous page. 

Appalachian, Florida, and Southeast - December 10 (69 FR 71697, 12/10/04). This final rule amends the 

Appalachian, Florida, and Southeast Federal milk marketing orders. Specifically, the final rule implements 

a temporary supplemental charge on Class I milk that will be disbursed to handlers who incurred 

extraordinary transportation costs for bulk milk movements in and to these orders as a result of hurricanes 

Charley, Frances, Ivan, and Jeanne. 
17

SUMMARY OF THE QUANTITIES AND UTILIZATION OF MILK PRICED 

On April 1, 2004, the Federal milk order regulating the Western marketing area was terminated due to the 

failure of producers to approve the order as amended. As such, the Western order is a noncomparable 

market and is excluded from year-to-year comparisons in this report. There are now 10 comparable 

markets. 

At the end of 2004, there were 306 handlers regulated under the 10 Federal milk orders. These handlers 

operated 267 distributing (fluid milk processing) plants and 93 supply (manufacturing) plants. The 

Northeast order had the largest number of regulated handlers (65) and distributing plants (63). The Upper 

Midwest order had the most supply plants (56). An average of 52,341 producers (dairy farmers) marketed 

milk under Federal milk orders in 2004. On a monthly basis, the number of producers peaked at 59,277 in 

January, and was lowest in April (43,972). There was an average of 15,039 producers on the Northeast 

order (See the information below concerning not-pooled milk.) and only 96 producers on the Arizona-Las 

Vegas order. 

During 2004, about 103 billion pounds of milk was marketed by dairy farmers under the Federal milk order 

program. (See the information below concerning not-pooled milk.) This volume of milk accounted for 

about 61 percent of all the milk marketed in the United States and about 62 percent of the fluid grade 

(Grade A) milk marketings. The average butterfat test of producer milk receipts was 3.67 percent, and 

ranged from 3.56 percent in July to 3.77 percent in January and November. On a monthly basis, producer 

milk receipts peaked in January at 10.6 billion pounds, and were lowest in April (6.5 billion pounds). Over 

22 billion pounds of milk were marketed under the Northeast order, just 2.9 billion pounds under the 

Florida order. The average delivery of milk per producer during 2004 was 5,352 pounds, and ranged from 

4,122 pounds in the Northeast order to 82,723 pounds in the Arizona-Las Vegas order. 

Nearly 45 billion pounds of producer milk receipts were disposed as Class I (fluid milk) products in 2004, 

43.6 percent of total producer milk marketings, and 0.5 percent lower than in 2003, on a comparable market 

and daily average basis. The butterfat content of producer milk used in Class I averaged 2.00 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 (3.4 billion pounds). The order with the largest volume of Class I producer milk was 

Northeast (10.7 billion pounds), over 64 percent more than the next largest volume (Mideast). On an 

individual order basis, the average Class I utilization percentage in 2004 ranged from 84.9 in the Florida 

order to 25.8 in the Upper Midwest order. 

Over 13 percent (14 billion pounds) of total producer milk marketings were used to produce Class II 

products (cream products, cottage cheese, and frozen desserts) in 2004. The butterfat test of producer milk 

used in Class II averaged 7.67 percent. The Northeast order had the largest volume of Class II producer 

milk (4.4 billion pounds). Class III products (hard cheeses and cream cheese) accounted for nearly 32 

billion pounds of producer milk, 30.9 percent of total producer milk marketings. The butterfat test of 

producer milk used in Class III averaged 3.88 percent. The Upper Midwest order had the largest volume of 

Class III producer milk (9.9 billion pounds). Over 12 billion pounds of producer milk, about 12 percent of 

total producer milk marketings, were used to produce Class IV products (butter and dried milk products). 

The butterfat test of producer milk used in Class IV averaged 4.65 percent. The Pacific Northwest order 

had the largest volume of Class IV producer milk (2.3 billion pounds). 

An estimated 17.4 billion pounds of producer milk that normally would have been marketed under Federal 

orders in 2004 was not pooled due to the relationship between intra-order uniform and lower class prices. 

Not pooling due to price occurred in all months except January and in all orders but Arizona-Las Vegas. 

Nearly 98 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, as well as the number of producers and 

Class III use, 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 12 63

Appalachian 005 37 2 23

Southeast 007 38 3 28

Florida 006 15 0 11

Mideast 033 32 4 42

Upper Midwest 030 57 56 27

Central 032 23 7 32

Southwest 126 18 3 22

Arizona-Las Vegas 131 4 1 3

Western 4/ 135 -- -- --

Pacific Northwest 124 17 5 16

All Markets Combined 306 93 267

4/ Effective April 1, 2004, the Western Federal milk order was terminated.

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

 Federal Milk Orders, by Order, December 2004

1/ See page 6 for definition of the term "handler".

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.

18
Northeast 001 15,760 15,634 15,547 14,049 14,057 14,049 15,340 15,359 15,260 15,194 

Appalachian 005 3,439 3,395 3,452 3,311 3,450 3,375 3,445 3,400 3,661 3,477 Southeast 007 4,092 3,973 3,913 3,505 4,537 3,759 3,749 3,635 3,827 3,608 Florida 006 299 292 294 287 282 284 282 299 381 301 Mideast 033 10,099 9,942 9,967 9,535 8,944 10,391 9,707 10,282 10,224 10,183 Upper Midwest 030 16,725 16,395 6,095 6,309 6,234 16,307 16,327 16,476 12,786 15,973 Central 032 6,269 6,153 6,266 5,329 5,895 6,117 6,108 6,006 5,694 5,808 Southwest 126 869 886 864 855 893 909 954 822 777 838 Arizona-Las Vegas 131 104 100 101 100 98 93 93 93 93 93 Western 1/ 135 731 736 600 --- --- --- --- --- --- --- Pacific Northwest 124 890 869 863 692 692 906 896 896 845 891 All Markets Combined 59,277 58,375 47,962 43,972 45,082 56,190 56,901 57,268 53,548 56,366 

JAN JUN JUL FEB MAR APR MAY

1/ Effective April 1, 2004, the Western Federal milk order was terminated.

Table 5--Number of Producers Delivering Milk to Handlers Regulated Under Federal Orders, by Marketing Area, 2004

AUG SEP OCT 

Federal Milk Order Marketing Area Order Number
Northeast 2/ 001 1,993 1,901 2,086 1,841 1,895 1,785 1,996 1,891 1,788 1,830 

Appalachian 3/ 005 569 520 500 482 517 548 519 537 492 521 Southeast 4/ 007 656 626 656 562 616 647 542 594 560 573 Florida 2/ 006 262 249 271 240 261 241 232 220 191 217 Mideast 5/ 033 1,513 1,408 1,297 873 919 1,552 1,487 1,546 1,336 1,546 Upper Midwest 6/ 030 2,209 1,944 675 608 663 2,114 2,202 2,002 1,290 1,977 Central 5/ 032 1,275 1,163 712 612 652 1,235 1,272 1,231 759 1,204 Southwest 7/ 126 799 727 601 634 672 778 875 778 744 791 Arizona-Las Vegas 131 264 255 266 253 248 241 228 222 218 231 Western 8/ 9/ 135 476 455 165 --- --- --- --- --- --- --- Pacific Northwest 10/ 124 614 581 601 414 440 594 648 620 481 617 All Markets Combined 10,630 9,831 7,832 6,520 6,882 9,734 10,001 9,640 7,859 9,508  6/ Handlers in this marketing area elected not to pool milk in February-December due to disadvantageous class and uniform price relationships. 7/ Handlers in this marketing area elected not to pool milk in March-December due to disadvantageous class and uniform price relationships. 1/ All Markets Combined and TOTAL may not add due to rounding. 4/ Handlers in this marketing area elected not to pool milk in April and December due to disadvantageous class and uniform price relationships. 3/ Handlers in this marketing area elected not to pool milk in March-May and December due to disadvantageous class and uniform price relationships. 5/ Handlers in these marketing areas elected not to pool milk in February-May, September, November, and December due to disadvantageous class and uniform price relationsh 2/ Handlers in these marketing areas elected not to pool milk in April due to disadvantageous class and uniform price relationships.

Million Pounds

10/ Handlers in this marketing area elected not to pool milk in March-September, November, and December due to disadvantageous intraorder class and uniform price relationsh 9/ Handlers in this marketing area elected not to pool milk in March due to disadvantageous intraorder class and uniform price relationships.

JUL 

AUG SEP OCT

 8/ Effective April 1, 2004, the Western Federal milk order was terminated.

Table 6--Receipts of Producer Milk by Handlers Regulated Under Federal Orders, by Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN 
Northeast 001 4,079 4,194 4,329 4,367 4,349 4,235 4,197 3,971 3,906 3,885 

Appalachian 005 5,339 5,286 4,674 4,853 4,833 5,409 4,858 5,099 4,477 4,836 Southeast 007 5,169 5,436 5,409 5,347 4,379 5,742 4,666 5,268 4,875 5,124 Florida 006 28,297 29,427 29,687 27,828 29,839 28,297 26,495 23,719 16,681 23,299 Mideast 033 4,833 4,883 4,199 3,053 3,315 4,980 4,943 4,851 4,357 4,897 Upper Midwest 030 4,261 4,089 3,573 3,212 3,429 4,321 4,351 3,919 3,364 3,994 Central 032 6,560 6,520 3,667 3,830 3,568 6,728 6,716 6,611 4,445 6,688 Southwest 126 29,642 28,306 22,455 24,721 24,274 28,527 29,586 30,529 31,914 30,440 Arizona-Las Vegas 131 81,732 87,996 85,043 84,446 81,628 86,409 79,244 77,048 77,967 80,016 Western 2/ 135 21,027 21,300 8,880 --- --- --- --- --- --- --- Pacific Northwest 124 22,261 23,043 22,459 19,960 20,489 21,843 23,329 22,314 18,984 22,346 All Markets Combined 3/ 5,785 5,807 5,267 4,943 4,924 5,775 5,670 5,430 4,892 5,441 

JUL OCT

Table 7--Average Daily Delivery of Milk Per Producer to Handlers Regulated Under Federal Orders, by Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR JUN

3/ Figures are computed from the "All Markets Combined" data for number of producers and receipts of producer milk from Tables 5 and 6.

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/ Effective April 1, 2004, the Western Federal milk order was terminated.

Pounds

MAY AUG SEP
Northeast 001 3.76 3.74 3.70 3.66 3.59 3.55 3.55 3.57 3.61 3.72 3.78 

Appalachian 005 3.72 3.72 3.64 3.59 3.52 3.50 3.51 3.55 3.59 3.68 3.70 Southeast 007 3.75 3.73 3.61 3.56 3.53 3.52 3.55 3.58 3.64 3.74 3.75 Florida 006 3.67 3.65 3.58 3.57 3.55 3.54 3.57 3.62 3.71 3.68 3.64 Mideast 033 3.79 3.78 3.72 3.66 3.58 3.56 3.55 3.58 3.61 3.72 3.77 Upper Midwest 030 3.82 3.81 3.75 3.71 3.66 3.64 3.61 3.65 3.67 3.80 3.82 Central 032 3.75 3.75 3.67 3.62 3.58 3.55 3.55 3.58 3.61 3.73 3.74 Southwest 126 3.77 3.71 3.67 3.62 3.55 3.50 3.51 3.53 3.60 3.70 3.79 Arizona-Las Vegas 131 3.67 3.61 3.54 3.51 3.52 3.55 3.59 3.57 3.63 3.67 3.73 Western 2/ 135 3.73 3.70 3.61 --- --- --- --- --- --- --- --- Pacific Northwest 124 3.82 3.75 3.71 3.63 3.57 3.59 3.59 3.60 3.68 3.72 3.79 All Markets Combined 3.77 3.75 3.68 3.63 3.57 3.56 3.56 3.59 3.63 3.73 3.77 

JUN JUL

Table 8--Butterfat Test of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR

2/ Effective April 1, 2004, the Western Federal milk order was terminated.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

MAY NOV AUG SEP OCT D
Northeast 001 8.76 8.74 8.73 8.70 8.67 8.65 8.63 8.66 8.66 8.76 8.7

Mideast 033 8.80 8.78 8.75 8.73 8.68 8.66 8.65 8.70 8.72 8.80 8.8Upper Midwest 030 8.79 8.74 8.73 8.72 8.71 8.69 8.66 8.69 8.70 8.79 8.7Central 032 8.81 8.79 8.78 8.78 8.73 8.68 8.67 8.70 8.76 8.81 8.8Southwest 126 8.81 8.82 8.77 8.77 8.71 8.67 8.67 8.72 8.76 8.83 8.8Western 2/ 135 8.83 8.80 8.76 --- --- --- --- --- --- --- --- Pacific Northwest 124 8.80 8.75 8.72 8.70 8.71 8.68 8.67 8.68 8.78 8.84 8.8All Markets Combined 8.79 8.77 8.74 8.73 8.69 8.67 8.65 8.69 8.71 8.80 8.8

Table 9--Nonfat Solids Test of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR JUL MAY

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

JUN SEP NO

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 produce

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

AUG OCT 
Northeast 001 3.08 3.07 3.05 3.01 2.97 2.96 2.96 2.98 3.01 3.11 3.13 3

Mideast 033 3.10 3.07 3.05 3.01 2.97 2.95 2.94 2.99 3.03 3.10 3.11 3Upper Midwest 030 3.08 3.06 3.02 3.01 2.99 2.97 2.95 2.98 3.02 3.12 3.11 3Central 032 3.09 3.08 3.05 3.03 3.00 2.97 2.95 2.99 3.06 3.11 3.13 3Southwest 126 3.09 3.08 3.05 3.03 3.00 2.96 2.96 3.00 3.07 3.12 3.16 3Western 2/ 135 3.13 3.11 3.05 --- --- --- --- --- --- --- --- Pacific Northwest 124 3.12 3.07 3.05 3.02 3.01 2.98 2.96 2.98 3.08 3.14 3.15 3All Markets Combined 3.09 3.07 3.05 3.02 2.98 2.96 2.95 2.99 3.03 3.11 3.13 3

Table 10--Protein (True) Test of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR JUL MAY

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

JUN SEP NOV

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 OCT D
Northeast 001 5.68 5.66 5.68 5.69 5.70 5.69 5.67 5.67 5.65 5.65 5.66 

Mideast 033 5.71 5.71 5.70 5.71 5.72 5.71 5.71 5.71 5.69 5.69 5.68 Upper Midwest 030 5.71 5.69 5.71 5.71 5.72 5.73 5.71 5.71 5.69 5.67 5.67 Central 032 5.73 5.71 5.74 5.74 5.73 5.72 5.72 5.71 5.70 5.69 5.71 Southwest 126 5.72 5.74 5.72 5.74 5.71 5.71 5.72 5.70 5.69 5.71 5.72 Western 2/ 135 5.70 5.69 5.71 --- --- --- --- --- --- --- --- Pacific Northwest 124 5.68 5.68 5.67 5.68 5.70 5.69 5.71 5.70 5.69 5.71 5.70 All Markets Combined 5.70 5.69 5.70 5.71 5.71 5.71 5.70 5.70 5.68 5.68 5.68 

Table 11--Other Solids Test of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR JUL MAY

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

JUN SEP NOV

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 OCT 
Mideast 033 322 315 338 345 321 367 389 368 339 297 280 

Upper Midwest 030 285 295 295 288 282 309 326 329 296 277 253 Central 032 277 289 299 289 292 303 327 328 296 275 273 Southwest 126 270 274 299 297 288 279 324 337 307 308 320 All Markets Combined 289 293 308 305 296 315 342 341 310 289 282 

Table 12--Somatic Cell Count of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL

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
Northeast 001 944 828 931 892 848 818 865 862 915 930 

Appalachian 005 393 346 381 368 332 333 349 367 363 353 Southeast 007 412 365 401 391 355 347 373 401 394 395 4Florida 006 227 204 225 217 197 189 203 190 169 190 Mideast 033 584 511 577 544 502 474 520 534 556 554 Upper Midwest 030 392 355 396 382 352 336 355 361 375 374 Central 032 387 343 383 371 330 321 344 367 369 370 Southwest 126 362 323 353 350 318 314 329 355 356 358 Arizona-Las Vegas 131 85 80 86 83 73 69 74 82 82 81 Western 2/ 135 99 88 99 --- --- --- --- --- --- --- Pacific Northwest 124 185 165 190 179 169 164 173 176 182 185 All Markets Combined 4,071 3,609 4,022 3,777 3,475 3,366 3,586 3,695 3,762 3,790 3

JUN JUL 

Federal Milk Order Marketing Area Order Number FEB MAR APR MAY

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

Table 13--Utilization of Producer Milk in Class I Products, by Federal Milk Order Marketing Area, 2004 1/

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

JAN AUG SEP OCT N

Million Pounds
Northeast 001 47.39 43.56 44.61 48.47 44.76 45.84 43.36 45.61 51.14 50.81 5

Appalachian 005 69.07 66.52 76.20 76.38 64.17 60.87 67.28 68.20 73.81 67.69 7Southeast 007 62.88 58.32 61.14 69.46 57.61 53.56 68.71 67.56 70.36 68.95 7Florida 006 86.61 81.91 83.02 90.58 75.71 78.42 87.81 86.32 88.86 87.51 8Mideast 033 38.60 36.31 44.50 62.31 54.58 30.52 34.99 34.54 41.61 35.83 3Upper Midwest 030 17.76 18.25 58.64 62.79 53.18 15.89 16.10 18.02 29.08 18.93 4Central 032 30.35 29.49 53.76 60.62 50.62 26.00 27.08 29.84 48.63 30.69 5Southwest 126 45.28 44.39 58.74 55.24 47.27 40.37 37.56 45.62 47.88 45.32 4Arizona-Las Vegas 131 32.19 31.41 32.35 32.68 29.32 28.74 32.39 37.06 37.83 35.04 3Western 2/ 135 20.71 19.40 60.03 --- --- --- --- --- --- --- Pacific Northwest 124 30.14 28.34 31.61 43.24 38.41 27.70 26.75 28.44 37.90 29.95 4All Markets Combined 38.30 36.71 51.36 57.93 50.50 34.57 35.85 38.33 47.87 39.86 5

Table 14--Class I Utilization Percentage of Producer Milk , by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR SEP OCT AUG N

2/ Effective April 1, 2004, the Western Federal milk order was terminated.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 producer milk.

Percent

MAY JUN JUL 

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 statistic
Northeast 001 2.06 2.04 2.03 2.04 2.01 2.03 2.05 2.05 2.01 2.06 2.1

Appalachian 005 2.10 2.09 2.08 2.07 2.09 2.15 2.13 2.07 2.08 2.08 2.1Southeast 007 2.14 2.12 2.12 2.12 2.15 2.23 2.23 2.12 2.11 2.14 2.2Florida 006 2.16 2.13 2.13 2.17 2.19 2.21 2.22 2.19 2.24 2.16 2.2Mideast 033 1.87 1.87 1.91 1.86 1.85 1.88 1.89 1.88 1.85 1.86 1.9Upper Midwest 030 1.53 1.54 1.58 1.56 1.52 1.59 1.62 1.59 1.54 1.56 1.6Central 032 1.81 1.80 1.83 1.80 1.81 1.87 1.86 1.81 1.78 1.80 1.8Southwest 126 2.40 2.27 2.31 2.30 2.29 2.40 2.40 2.29 2.27 2.29 2.3Arizona-Las Vegas 131 1.97 1.96 1.96 1.98 1.98 2.00 1.99 1.92 1.93 2.00 2.0Western 2/ 135 1.94 1.93 1.92 --- --- --- --- --- --- --- --Pacific Northwest 124 1.82 1.79 1.83 1.79 1.78 1.85 1.87 1.83 1.81 1.85 1.9All Markets Combined 1.99 1.96 1.98 1.97 1.96 2.02 2.02 1.99 1.96 1.98 2.0

Table 15--Butterfat Test of Producer Milk Used in Class I Products, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR AUG NO

MAY

2/ Effective April 1, 2004, the Western Federal milk order was terminated.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 

SEP OCT
Northeast 001 8.92 8.91 8.89 8.85 8.82 8.79 8.76 8.80 8.79 8.91 8.9

Mideast 033 8.99 8.96 8.93 8.90 8.86 8.79 8.80 8.85 8.88 8.97 8.9Upper Midwest 030 9.01 8.96 8.93 8.92 8.89 8.85 8.82 8.86 8.89 8.99 8.9Central 032 9.01 9.00 8.97 8.96 8.88 8.83 8.83 8.87 8.93 9.01 9.0Southwest 126 8.95 8.98 8.89 8.88 8.82 8.79 8.80 8.84 8.89 8.96 9.0Western 2/ 135 8.99 8.96 8.90 --- --- --- --- --- --- --- --- Pacific Northwest 124 8.96 8.92 8.88 8.88 8.89 8.86 8.82 8.83 8.94 9.00 9.0All Markets Combined 8.97 8.95 8.91 8.89 8.85 8.81 8.80 8.84 8.87 8.96 8.9

Table 16--Nonfat Solids Test of Producer Milk Used in Class I Products, by Federal Milk Order Marketing Area, 2004 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.2/ Effective April 1, 2004, the Western Federal milk order was terminated.

Percent

JUL 

AUG SEP OCT
Northeast 001 353 353 419 365 387 396 383 381 357 368 3

Appalachian 005 72 69 87 77 79 85 80 84 76 82 7Southeast 007 65 67 78 74 86 91 61 75 64 67 5Florida 006 19 21 23 19 21 23 19 21 15 21 2Mideast 2/ 033 223 207 232 227 243 241 235 247 235 232 2Upper Midwest 3/ 030 122 84 76 96 116 132 129 131 115 114 1Central 2/ 032 117 88 101 130 137 140 149 141 134 125 1Southwest 126 99 99 112 118 118 115 127 110 103 93 9Arizona-Las Vegas 131 18 21 22 19 18 21 24 24 23 19 1Western 4/ 135 27 27 29 --- --- --- --- --- --- --- -Pacific Northwest 5/ 124 37 34 42 35 39 41 46 43 37 39 3All Markets Combined 1,152 1,071 1,220 1,160 1,243 1,285 1,252 1,259 1,157 1,158 1,

Table 17--Utilization of Producer Milk in Class II Products, by Federal Milk Order Marketing Area, 2004 1/

Order 

Number JAN FEB MAR APR MAY

uniform prices.4/ Effective April 1, 2004, the Western Federal milk order was terminated.5/ Handlers in this marketing area elected not to pool producer milk used in Class II in March-September, November, and December due to the relationship between the or

AUG

Million Pounds

3/ Handlers in this marketing area elected not to pool producer milk used in Class II in February-April due to the relationship between the order's Class II and uniform pric1/ All Markets Combined and TOTAL may not add due to rounding.2/ Handlers in these marketing areas elected not to pool producer milk used in Class II in February and March due to the relationship between the order's Class II and unifo

SEP N

Federal Milk Order Marketing Area JUN JUL OCT
Northeast 001 17.73 18.54 20.07 19.84 20.44 22.20 19.19 20.16 19.97 20.09 19

Appalachian 005 12.70 13.23 17.34 15.94 15.31 15.43 15.33 15.55 15.36 15.77 15Southeast 007 9.87 10.73 11.92 13.20 13.89 13.98 11.33 12.71 11.40 11.66 10Florida 006 7.29 8.44 8.56 7.73 8.21 9.60 8.36 9.74 7.61 9.55 8.Mideast 033 14.75 14.72 17.91 25.94 26.44 15.51 15.77 15.99 17.57 14.99 14Upper Midwest 030 5.51 4.33 11.23 15.83 17.47 6.26 5.84 6.56 8.88 5.74 11Central 032 9.20 7.59 14.12 21.30 20.98 11.32 11.71 11.49 17.58 10.36 16Southwest 126 12.38 13.62 18.56 18.67 17.50 14.84 14.51 14.18 13.89 11.70 11Arizona-Las Vegas 131 6.66 8.24 8.23 7.46 7.09 8.76 10.29 10.82 10.65 8.31 8.Western 2/ 135 5.72 5.92 17.61 --- --- --- --- --- --- --- -Pacific Northwest 124 5.98 5.91 6.95 8.35 8.78 6.91 7.06 6.90 7.63 6.36 8.All Markets Combined 10.84 10.89 15.58 17.79 18.06 13.20 12.51 13.06 14.72 12.18 141/ 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 pro2/ Effective April 1, 2004, the Western Federal milk order was terminated.

Percent

MAY JUN JUL 

AUG SEP 

OCT

Table 18--Class II Utilization Percentage of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR NO
Northeast 001 7.36 7.09 6.89 7.16 7.00 6.78 7.38 6.97 7.19 7.31 7.

Appalachian 005 8.30 8.82 8.38 8.46 7.94 8.01 7.88 8.20 8.13 8.12 8.Southeast 007 8.24 8.09 7.39 7.41 6.81 6.77 8.98 8.05 8.76 8.03 8.Florida 006 14.74 14.58 15.00 17.13 14.47 13.56 16.29 14.93 16.82 15.04 16Mideast 033 6.15 6.47 6.57 6.04 5.81 6.76 6.81 6.65 6.46 6.47 6.Upper Midwest 030 8.34 9.90 12.71 10.06 8.51 8.62 8.29 7.91 8.29 8.40 9.Central 032 6.51 7.27 6.63 6.28 5.81 6.55 6.35 6.52 6.29 6.70 6.Southwest 126 8.16 8.32 7.92 7.42 7.05 7.75 7.73 8.65 8.55 9.37 9.Arizona-Las Vegas 131 9.77 11.38 9.92 10.91 12.14 15.94 13.18 12.94 9.98 12.01 12Western 2/ 135 6.66 6.06 7.17 --- --- --- --- --- --- --- -Pacific Northwest 124 9.92 10.51 10.08 11.58 9.72 10.34 9.64 11.04 10.85 10.24 11All Markets Combined 7.55 7.81 7.73 7.56 7.11 7.49 7.72 7.64 7.61 7.76 8.1/ 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 2/ Effective April 1, 2004, the Western Federal milk order was terminated.

Percent

MAY OCT JUN JUL 

AUG SEP

Table 19--Butterfat Test of Producer Milk Used in Class II Products, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR NO
Northeast 001 8.43 8.42 8.44 8.39 8.36 8.35 8.28 8.34 8.35 8.43 8.

Mideast 033 8.58 8.54 8.50 8.50 8.46 8.38 8.36 8.42 8.46 8.54 8.Upper Midwest 030 8.38 8.20 7.92 8.16 8.27 8.21 8.22 8.29 8.28 8.40 8.Central 032 8.61 8.52 8.56 8.57 8.54 8.43 8.43 8.45 8.53 8.57 8.Southwest 126 8.40 8.41 8.40 8.44 8.41 8.31 8.32 8.26 8.33 8.33 8.Western 2/ 135 8.59 8.61 8.48 --- --- --- --- --- --- --- -Pacific Northwest 124 8.22 8.12 8.13 8.00 8.18 8.09 8.12 8.01 8.12 8.23 8.All Markets Combined 8.47 8.43 8.41 8.41 8.40 8.34 8.31 8.35 8.38 8.45 8.2/ Effective April 1, 2004, the Western Federal milk order was terminated.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.

MAY

Percent

JUN AUG 

JUL 

Table 20--Nonfat Solids Test of Producer Milk Used in Class II Products, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR OCT SEP NO
Northeast 2/ 001 528 548 585 361 324 322 499 457 407 431 4

Appalachian 3/ 005 46 66 13 3 9 36 38 35 27 33 Southeast 4/ 007 104 111 133 13 72 90 75 65 59 65 Florida 2/ 006 9 15 16 5/ 26 22 5 1 2 1 Mideast 6/ 033 648 643 448 45 50 728 653 690 485 682 6Upper Midwest 7/ 030 1,521 1,447 83 11 31 1,475 1,559 1,364 670 1,357 3Central 6/ 032 654 629 142 20 20 628 620 611 180 607 1Southwest 7/ 126 219 215 24 16 7 212 212 206 204 206 2Arizona-Las Vegas 131 97 90 106 104 107 92 80 76 88 97 Western 8/ 9/ 135 302 302 9 --- --- --- --- --- --- --- Pacific Northwest 10/ 124 211 202 187 12 12 175 214 212 85 220 All Markets Combined 4,341 4,268 1,745 587 657 3,781 3,955 3,716 2,206 3,697 2and uniform price. 9/ Effective April 1, 2004, the Western Federal milk order was terminated.10/ Handlers in this marketing area elected not to pool producer milk used in Class III in March-June, August-September, November, and December due to the relationship bet

JUL 

Federal Milk Order Marketing Area APR Order Number

 2/ Handlers in these marketing areas elected not to pool producer milk used in Class III in April due to the relationship between the order's Class III and uniform price.

 3/ Handlers in these marketing areas elected not to pool producer milk used in Class III in March-May and December due to the relationship between the order's Class III and u

 7/ Handlers in these marketing areas elected not to pool producer milk used in Class III in March-December due to the relationship between the order's Class III and uniform p 8/ Handlers in this marketing area elected not to pool producer milk used in Class III in March due to the relationship between the order's Class III and uniform price. 6/ Handlers in these marketing areas elected not to pool producer milk used in Class III in March-May, September, November, and December due to the relationship between t

FEB JUN MAR MAY

 4/ Handlers in these marketing areas elected not to pool producer milk used in Class III in April and December due to the relationship between the order's Class III and uniform 

Class III and uniform price.

Table 21--Utilization of Producer Milk in Class III Products, by Federal Milk Order Marketing Area, 2004 1/

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

JAN AUG SEP OCT N

Million Pounds

 5/ Less than 500,000 pounds.
Northeast 001 26.50 28.83 28.02 19.63 17.10 18.07 25.00 24.16 22.73 23.53 23

Appalachian 005 8.16 12.76 2.69 0.71 1.70 6.48 7.32 6.57 5.48 6.39 5.Southeast 007 15.85 17.70 20.26 2.38 11.62 13.95 13.88 11.03 10.49 11.37 12Florida 006 3.55 6.00 5.95 0.12 10.08 8.92 2.36 0.25 0.97 0.30 0.Mideast 033 42.86 45.64 34.54 5.13 5.45 46.89 43.88 44.61 36.28 44.11 43Upper Midwest 030 68.87 74.44 12.30 1.81 4.61 69.79 70.78 68.15 51.94 68.60 35Central 032 51.31 54.04 19.88 3.31 3.03 50.90 48.74 49.65 23.75 50.40 23Southwest 126 27.39 29.54 3.98 2.52 1.03 27.29 24.26 26.42 27.46 26.04 27Arizona-Las Vegas 131 36.97 35.35 39.69 41.16 43.10 38.25 34.96 34.00 40.38 41.89 31Western 2/ 135 63.46 66.43 5.17 --- --- --- --- --- --- --- -Pacific Northwest 124 34.33 34.83 31.20 2.87 2.78 29.56 33.01 34.26 17.59 35.59 16All Markets Combined 40.84 43.42 22.29 9.00 9.55 38.84 39.54 38.55 28.07 38.89 262/ Effective April 1, 2004, the Western Federal milk order was terminated.Class III and total producer milk.

Percent

JUN AUG SEP OCT NO

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

MAY JUL

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

Table 22--Class III Utilization Percentage of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR
Northeast 001 3.83 3.82 3.77 3.94 4.06 3.75 3.59 3.80 3.85 3.90 3.

Appalachian 005 4.83 4.06 10.28 34.05 11.51 4.59 4.55 5.13 6.48 5.73 5.Southeast 007 4.73 4.35 4.40 9.05 4.75 4.38 4.30 4.54 4.63 5.05 4.Florida 006 5.52 4.45 4.59 42.97 3.88 3.83 4.96 35.78 17.02 48.99 40Mideast 033 3.57 3.59 3.51 5.94 5.36 3.27 3.23 3.35 3.38 3.54 3.Upper Midwest 030 3.82 3.80 5.83 24.78 9.76 3.66 3.64 3.74 3.97 3.95 4.Central 032 3.64 3.60 4.49 6.92 6.96 3.50 3.50 3.49 3.86 3.76 4.Southwest 126 3.56 3.43 6.90 8.57 25.21 3.86 3.90 3.93 3.95 4.29 3.Arizona-Las Vegas 131 5.24 5.19 5.22 4.92 4.75 4.10 4.41 4.26 4.48 4.64 5.Western 2/ 135 3.40 3.36 7.11 --- --- --- --- --- --- --- -Pacific Northwest 124 3.92 3.89 4.02 11.19 11.08 4.17 3.96 4.00 4.78 4.19 4.All Markets Combined 3.79 3.75 4.14 5.35 5.15 3.64 3.61 3.70 3.92 3.93 4.2/ Effective April 1, 2004, the Western Federal milk order was terminated.

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, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY
Northeast 001 3.08 3.06 3.04 3.01 2.96 2.96 2.96 2.98 3.02 3.11 3.1

Mideast 033 3.09 3.07 3.05 2.94 2.86 2.96 2.95 2.99 3.03 3.10 3.1Upper Midwest 030 3.08 3.06 2.94 2.34 2.79 2.97 2.95 2.98 3.00 3.12 3.0Central 032 3.07 3.07 3.00 2.89 2.86 2.96 2.94 2.98 3.02 3.10 3.1Southwest 126 3.07 3.08 2.96 2.90 2.33 2.92 2.91 2.94 3.03 3.08 3.1Western 2/ 135 3.15 3.13 2.97 --- --- --- --- --- --- --- --- Pacific Northwest 124 3.16 3.10 3.07 2.80 2.78 2.97 2.97 2.99 3.10 3.16 3.1

3.09 3.07 3.04 2.97 2.92 2.96 2.95 2.98 3.02 3.11 3.1

MAY

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

Table 24--Protein (True) Test of Producer Milk Used in Class III Products, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR JUN 

Percent

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 foAVERAGE 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 JUL AUG SEP OCT
Northeast 001 5.67 5.65 5.67 5.66 5.66 5.67 5.66 5.65 5.64 5.63 5.6

Mideast 033 5.72 5.72 5.71 5.57 5.60 5.74 5.73 5.73 5.71 5.71 5.6Upper Midwest 030 5.71 5.68 5.60 4.46 5.35 5.73 5.71 5.71 5.67 5.66 5.6Central 032 5.73 5.72 5.67 5.54 5.51 5.73 5.73 5.72 5.69 5.69 5.6Southwest 126 5.72 5.74 5.52 5.43 4.43 5.68 5.68 5.67 5.67 5.67 5.7Western 2/ 135 5.71 5.71 5.53 --- --- --- --- --- --- --- --Pacific Northwest 124 5.68 5.68 5.65 5.23 5.25 5.66 5.70 5.70 5.67 5.69 5.6

5.71 5.69 5.67 5.60 5.59 5.72 5.71 5.70 5.67 5.67 5.6

Table 25--Other Solids Test of Producer Milk Used in Class III Products, by Federal Milk Order Marketing Area, 2004 1/

APR MAY Order Number JAN FEB

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

MAR JUN 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 f

AVERAGE 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
Northeast 001 167 172 152 222 336 248 249 190 110 102 84 

Appalachian 2/ 005 57 39 19 34 97 94 52 52 26 53 36 Southeast 007 75 83 44 84 104 120 33 52 43 46 33 Florida 006 7 9 7 4 16 7 3 8 5 6 4 Mideast 033 57 47 39 58 124 110 80 75 61 78 55 Upper Midwest 3/ 030 173 58 120 119 164 170 160 146 130 133 114 Central 032 117 103 87 90 165 146 159 111 76 103 75 Southwest 126 119 91 113 149 230 136 207 107 80 134 99 Arizona-Las Vegas 131 64 64 53 47 51 58 51 40 24 34 53 Western 4/ 135 48 38 28 --- --- --- --- --- --- --- --- Pacific Northwest 5/ 124 181 180 182 189 220 213 215 188 178 173 155 

1,066 883 844 996 1,507 1,303 1,209 969 734 862 707 

5/ Handlers in this marketing area elected not to pool producer milk used in Class IV in March-September, November, and December due to the relationship between Class IV and uniform price.3/ Handlers in this marketing area elected not to pool producer milk used in Class IV in February and March due to the relationship between the order's Class IV and u4/ Effective April 1, 2004, the Western Federal milk order was terminated.All Markets Combined

JUN JUL AUG 

Federal Milk Order Marketing Area Order Number JAN APR SEP

Million Pounds

MAY

2/ Handlers in this marketing area elected not to pool producer milk used in Class IV in March and April due to the relationship between the order's Class IV and unif

Table 26--Utilization of Producer Milk in Class IV Products, by Federal Milk Order Marketing Area, 2004 1/

FEB MAR OCT NOV 

1/ All Markets Combined and TOTAL may not add due to rounding.
Northeast 001 8.38 9.07 7.30 12.05 17.70 13.90 12.45 10.07 6.16 5.57 4.

Appalachian 005 10.07 7.49 3.76 6.98 18.82 17.21 10.06 9.68 5.35 10.15 7.Southeast 007 11.39 13.25 6.67 14.96 16.87 18.51 6.08 8.70 7.75 8.03 5.Florida 006 2.55 3.66 2.48 1.58 6.01 3.06 1.47 3.69 2.56 2.63 1.Mideast 033 3.79 3.32 3.04 6.62 13.52 7.08 5.36 4.85 4.53 5.07 3.Upper Midwest 030 7.85 2.98 17.83 19.57 24.74 8.06 7.27 7.27 10.09 6.72 12Central 032 9.14 8.88 12.23 14.77 25.37 11.79 12.48 9.02 10.04 8.55 9.Southwest 126 14.95 12.45 18.71 23.57 34.20 17.50 23.68 13.78 10.77 16.95 13Arizona-Las Vegas 131 24.18 25.00 19.73 18.71 20.49 24.25 22.36 18.12 11.15 14.77 23Western 2/ 135 10.10 8.25 17.19 --- --- --- --- --- --- --- -Pacific Northwest 124 29.54 30.92 30.24 45.54 50.04 35.83 33.19 30.40 36.89 28.10 33

10.03 8.98 10.77 15.28 21.89 13.38 12.09 10.06 9.33 9.07 9.

SEP

4/ Effective April 1, 2004, the Western Federal milk order was terminated.from the applicable monthly or year-to-date totals of producer milk used in Class IV and total producer milk.

OCT

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 statiFigures 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 prAll Markets Combined

MAY 

Percent

JUL NO

Table 27--Class IV Utilization Percentage of Producer Milk, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR JUN 

AUG
Northeast 001 5.49 4.80 4.89 4.01 3.20 3.11 2.76 3.06 4.39 5.16 5.

Appalachian 005 8.13 8.63 8.70 5.93 4.07 3.85 5.35 5.41 8.32 6.13 7.Southeast 007 7.39 6.47 8.17 5.98 4.67 4.17 6.71 7.20 8.73 9.45 12Florida 006 20.76 11.17 10.17 14.48 5.29 5.24 9.41 4.93 10.77 7.67 5.Mideast 033 16.61 15.24 15.77 9.54 5.48 5.75 7.40 7.68 10.55 10.32 11Upper Midwest 030 5.77 9.18 3.77 3.51 3.70 3.58 3.91 4.13 4.26 4.70 4.Central 032 8.06 8.14 6.99 6.55 4.84 4.61 4.75 6.20 7.21 6.92 7.Southwest 126 4.66 4.45 3.05 3.15 2.84 1.84 2.29 1.62 2.18 2.62 3.Arizona-Las Vegas 131 1.83 0.89 0.07 0.13 0.16 0.03 0.20 0.05 0.31 0.20 0.Western 2/ 135 7.85 8.90 4.83 --- --- --- --- --- --- --- -Pacific Northwest 124 4.52 4.10 3.88 3.44 3.45 3.16 3.31 3.12 3.60 3.65 3.

6.41 6.14 4.99 4.35 3.68 3.46 3.63 4.03 5.04 5.18 5.

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

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

Table 28--Butterfat Test of Producer Milk Used in Class IV Products, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN
Northeast 001 8.61 8.63 8.61 8.68 8.70 8.68 8.71 8.71 8.60 8.61 8.61 

Mideast 033 7.62 7.73 7.64 8.18 8.49 8.47 8.30 8.32 8.08 8.18 8.04 Upper Midwest 030 8.59 8.26 8.69 8.70 8.73 8.67 8.62 8.64 8.71 8.72 8.79 Central 032 8.41 8.37 8.43 8.43 8.61 8.58 8.55 8.46 8.43 8.53 8.52 Southwest 126 8.73 8.75 8.83 8.82 8.77 8.83 8.78 8.88 8.89 8.94 8.94 Western 2/ 135 8.44 8.32 8.62 --- --- --- --- --- --- --- --- Pacific Northwest 124 8.71 8.68 8.67 8.70 8.69 8.69 8.66 8.68 8.75 8.81 8.81 

8.54 8.51 8.60 8.65 8.69 8.66 8.64 8.64 8.63 8.68 8.69 

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 showAVERAGE 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

JUN 

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

Table 29--Nonfat Solids Test of Producer Milk Used in Class IV Products, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY
44

SUMMARY OF CLASS AND PRODUCER PRICES AND GROSS VALUES 

During 2004, the base skim milk price for Class I averaged $8.44 per cwt., and was the advanced Class III 

skim milk pricing factor in January, February, and May through December, and the Class IV skim milk 

pricing factor in March and April. This price ranged from a high of $12.98 in June to a low of $5.96 in 

March and April. The advanced butterfat pricing factor averaged $1.9526 per pound, and ranged from 

$1.3283 in January to $2.4580 in June. The Class I base price, also referred to as the Class I mover, 

averaged $14.98 per cwt., ranging from $11.59 in February to $21.13 in June, the record high for this price 

measure. For all markets combined, the Class I price averaged $17.56 per cwt. in 2004 (24.5 percent 

higher than 2003), ranging from $14.28 in February to $23.84 in June, also the record high. On an 

individual order basis, among the orders in effect for the entire year, the annual average Class I price 

ranged from $16.68 in the Upper Midwest order to $18.88 in the Florida order. 

The Class II price averaged $13.86 per cwt. in 2004, peaking at $15.21 in April, hitting the low point of 

$11.67 in January. The Class II, III, or IV prices do not vary from order to order. The Class III price 

averaged $15.39 per cwt. in 2004, ranging from $11.61 in January to $20.58 in May, the record high for 

this price measure. The Class IV price averaged $13.20 per cwt., ranging from $10.97 in January to $14.57 

in April. 

During 2004, the uniform milk price, a statistical measure of the minimum price received by dairy farmers 

marketing milk under the Federal order program, averaged $15.74 per cwt. (29.9 percent higher than 2003). 

This price peaked in May at $19.34, the record high for this price measure, and hit its low point in January 

at $12.85. Among the ten orders in effect the entire year, the uniform milk price ranged from $14.75 in the 

Upper Midwest and Pacific Northwest orders to $18.39 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, $0.43 per 

cwt.; butterfat, $2.0507 per pound; true protein, $2.6035 per pound; and other solids, $0.0751 per pound. 

For those producers subject to the somatic cell adjustment to their milk payment, the rate averaged 

$0.00082. 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 $10.22 per cwt. in 2004, and the uniform 

butterfat price averaged $2.0204 per pound. 

The gross value of producer milk receipts under the Federal order program in 2004 was $17.0 billion, about 

62 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 $324,119. Producers in the Arizona-Las Vegas order had a gross value of more than 

$4.7 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 $232,261 

each. 
45

FEDERAL MILK ORDER PRICE FORMULAS FOR 2004 

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 = ((Cheese price – 0.165) x 1.383 + ((((Cheese price – 0.165) x 1.572)- 

 Butterfat price x 0.9) x1.17). 

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

 Butterfat Price = (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 = (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, 2004 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 

2004

Jan 12/6,13 1.2219 0.8072 1.3227 0.1967 1/3,10,17,24 1.3632 0.8062 

Feb 1/10,17 1.3687 0.8051 1.2977 0.1824 1/31,2/7,14,21,28 1.6582 0.8064 

Mar 2/7,14 1.5879 0.8085 1.3054 0.1691 3/6,13,20,27 2.0994 0.8101 

Apr 3/6,13 1.9921 0.8090 1.4582 0.1706 4/3,10,17,24 2.1994 0.8171 

May 4/10,17 2.1514 0.8179 2.0530 0.2611 5/1,8,15,22,29 2.1385 0.8383 

Jun 5/8,15 2.1633 0.8372 2.1838 0.2975 6/5,12,19,26 1.9290 0.8497 

Jul 6/5,12 1.8723 0.8500 1.8683 0.2942 7/3,10,17,24 1.8269 0.8513 

Aug 7/10,17 1.8610 0.8552 1.5439 0.2600 7/31,8/7,14,21,28 1.6101 0.8584 

Sep 8/7,14 1.6058 0.8596 1.5047 0.2280 9/4,11,18,25 1.7278 0.8639 

Oct 9/4,11 1.6746 0.8622 1.5958 0.2155 10/2,9,16,23,30 1.7000 0.8565 

Nov 10/9,16 1.7223 0.8626 1.5373 0.2241 11/6,13,20,27 1.8224 0.8570 

Dec 11/6,13 1.6845 0.8553 1.5481 0.2338 12/4,11,18,25 1.8122 0.8713 

Avg. ---- 1.7422 0.8358 1.6016 0.2278 ---- 1.8239 0.8405 

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, 2004

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

2004

Jan 12/19/03 11.85 7.46 7.46 5.94 1.3283 6

Feb 1/23/04 11.59 6.55 6.55 5.93 1.5044 6

Mar 2/20 11.94 5.96 5.68 5.96 1.7675 6

Apr 3/19 13.64 5.96 5.64 5.96 2.2525 6

May 4/23 19.65 11.50 11.50 6.04 2.4437 6

Jun 5/21 21.13 12.98 12.98 6.21 2.4580 6

Jul 6/18 17.95 10.95 10.95 6.33 2.1088 7

Aug 7/23 14.62 7.55 7.55 6.37 2.0952 7

Sep 8/20 13.94 7.96 7.96 6.41 1.7890 7

Oct 9/17 14.78 8.53 8.53 6.44 1.8715 7

Nov 10/22 14.29 7.81 7.81 6.44 1.9288 7

Dec 11/19 14.43 8.12 8.12 6.37 1.8834 7

Avg. ---- 14.98 8.44 8.39 6.20 1.9526 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). 
Table 32--Federal Milk Order Class II, Class III, and Class IV Milk and Component Prices, 2004 

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 

2004

Jan 1/30/04 11.67 1.5048 11.61 6.60 10.97 5.94 1.4978 0.6595 2.0875 

Feb 3/5 12.90 1.8588 11.89 5.61 12.21 5.94 1.8518 0.6597 1.7911 

Mar 4/2 14.79 2.3883 14.49 6.38 14.10 5.97 2.3813 0.6634 2.0133 

Apr 4/30 15.21 2.5083 19.66 11.30 14.57 6.03 2.5013 0.6703 3.4465 

May 6/4 15.03 2.4352 20.58 12.52 14.50 6.22 2.4282 0.6913 3.7639 

Jun 7/2 14.31 2.1838 17.68 10.43 13.72 6.32 2.1768 0.7026 3.1086 

Jul 7/30 14.00 2.0613 14.85 7.94 13.31 6.34 2.0543 0.7042 2.3625 

Aug 9/3 13.13 1.8011 14.04 8.04 12.46 6.40 1.7941 0.7112 2.4663 

Sep 10/1 13.66 1.9424 14.72 8.23 13.00 6.45 1.9354 0.7167 2.5431 

Oct 11/5 13.57 1.9090 14.16 7.78 12.81 6.38 1.9020 0.7093 2.3814 

Nov 12/3 14.09 2.0559 14.89 8.00 13.34 6.39 2.0489 0.7098 2.4297 

Dec 12/30 13.98 2.0436 16.14 9.34 13.42 6.52 2.0366 0.7240 2.8486 

Avg --- 13.86 2.0577 15.39 8.51 13.20 6.24 2.0507 0.6935 2.6035 

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. 
Northeast Suffolk Co., MA Boston $3.25

Appalachian Mecklenburg, Co., NC Charlotte $3.10Southeast Fulton Co., GA Atlanta $3.10Florida Hillsborough, Co., FL Tampa $4.00Mideast Cuyahoga Co., OH Cleveland $2.00

.

Upper Midwest Cook Co., IL Chicago $1.80Central Jackson Co., MO Kansas City $2.00Southwest Dallas Co., TX Dallas $3.00Arizona-Las Vegas Maricopa Co., AZ Phoenix $2.35Western 1/ Salt Lake Co., UT Salt Lake City $1.90Pacific Northwest King Co., WA Seattle $1.901/ Effective April 1, 2004, the Western Federal milk order was terminated.

Portland, $1.90; and Spokane, $1.90.Las Vegas, $2.00.Boise, $1.60.Des Moines, $1.80; Omaha, $1.85; Oklahoma City, $2.60; St,  Denver, $2.55.Houston, $3.60; San Antonio, $3.45; Albuquerque, $2.35; and Orlando, $4.00 Miami, $4.30; and Jacksonville, $3.70.Indianapolis, $2.00; Cincinnati, $2.20; Pittsburgh, $2.10; and DMilwaukee, $1.75; and Minneapolis, $1.70.New York City, $3.15; Philadelphia, $3.05; Baltimore, $3.00; aKnoxville, $2.80 and Louisville, $2.20.New Orleans; $3.60; Memphis, $2.80; Nashville, $2.60; and S

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

Federal Milk Order Principal Pricing Poiint Major City in Principal Pricing Poiint Class I Differential for: Principal Pricing Point Other Major Cities in the Order

49
Northeast 001 10.71 9.80 9.21 9.21 14.75 16.23 14.20 10.80 11.21 11.78 11.0

Appalachian 005 10.56 9.65 9.06 9.06 14.60 16.08 14.05 10.65 11.06 11.63 10.9Southeast 007 10.56 9.65 9.06 9.06 14.60 16.08 14.05 10.65 11.06 11.63 10.9Florida 006 11.46 10.55 9.96 9.96 15.50 16.98 14.95 11.55 11.96 12.53 11.8Mideast 033 9.46 8.55 7.96 7.96 13.50 14.98 12.95 9.55 9.96 10.53 9.8Upper Midwest 030 9.26 8.35 7.76 7.76 13.30 14.78 12.75 9.35 9.76 10.33 9.6Central 032 9.46 8.55 7.96 7.96 13.50 14.98 12.95 9.55 9.96 10.53 9.8Southwest 126 10.46 9.55 8.96 8.96 14.50 15.98 13.95 10.55 10.96 11.53 10.8Arizona-Las Vegas 131 9.81 8.90 8.31 8.31 13.85 15.33 13.30 9.90 10.31 10.88 10.1Western 2/ 135 9.36 8.45 7.86 --- --- --- --- --- --- --- --- Pacific Northwest 124 9.36 8.45 7.86 7.86 13.40 14.88 12.85 9.45 9.86 10.43 9.7

10.15 9.24 8.64 8.67 14.21 15.69 13.66 10.25 10.65 11.23 10.5

Table 34--Class I Skim Milk Price, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUN JUL

2/ Effective April 1, 2004, the Western Federal milk order was terminated.

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 NOV 

Dollars per Hundredweight

All Markets Combined
Northeast 001 1.3608 1.5369 1.8000 2.2850 2.4762 2.4905 2.1413 2.1277 1.8215 1.9040 1.

Appalachian 005 1.3593 1.5354 1.7985 2.2835 2.4747 2.4890 2.1398 2.1262 1.8200 1.9025 1.Southeast 007 1.3593 1.5354 1.7985 2.2835 2.4747 2.4890 2.1398 2.1262 1.8200 1.9025 1.Florida 006 1.3683 1.5444 1.8075 2.2925 2.4837 2.4980 2.1488 2.1352 1.8290 1.9115 1.Mideast 033 1.3483 1.5244 1.7875 2.2725 2.4637 2.4780 2.1288 2.1152 1.8090 1.8915 1.Upper Midwest 030 1.3463 1.5224 1.7855 2.2705 2.4617 2.4760 2.1268 2.1132 1.8070 1.8895 1.Central 032 1.3483 1.5244 1.7875 2.2725 2.4637 2.4780 2.1288 2.1152 1.8090 1.8915 1.Southwest 126 1.3583 1.5344 1.7975 2.2825 2.4737 2.4880 2.1388 2.1252 1.8190 1.9015 1.Arizona-Las Vegas 131 1.3518 1.5279 1.7910 2.2760 2.4672 2.4815 2.1323 2.1187 1.8125 1.8950 1.Western 2/ 135 1.3473 1.5234 1.7865 --- --- --- --- --- --- --- Pacific Northwest 124 1.3473 1.5234 1.7865 2.2715 2.4627 2.4770 2.1278 2.1142 1.8080 1.8905 1.

1.3558 1.5318 1.7948 2.2801 2.4714 2.4857 2.1364 2.1228 1.8165 1.8991 1.

Table 35--Class I Butterfat Price, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR

2/ Effective April 1, 2004, the Western Federal milk order was terminated.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 15.10 14.84 15.19 16.89 22.90 24.38 21.20 17.87 17.19 18.03 17.5

Appalachian 005 14.95 14.69 15.04 16.74 22.75 24.23 21.05 17.72 17.04 17.88 17.3Southeast 007 14.95 14.69 15.04 16.74 22.75 24.23 21.05 17.72 17.04 17.88 17.3Florida 006 15.85 15.59 15.94 17.64 23.65 25.13 21.95 18.62 17.94 18.78 18.2Mideast 033 13.85 13.59 13.94 15.64 21.65 23.13 19.95 16.62 15.94 16.78 16.2Upper Midwest 030 13.65 13.39 13.74 15.44 21.45 22.93 19.75 16.42 15.74 16.58 16.0Central 032 13.85 13.59 13.94 15.64 21.65 23.13 19.95 16.62 15.94 16.78 16.2Southwest 126 14.85 14.59 14.94 16.64 22.65 24.13 20.95 17.62 16.94 17.78 17.2Arizona-Las Vegas 131 14.20 13.94 14.29 15.99 22.00 23.48 20.30 16.97 16.29 17.13 16.6Western 2/ 135 13.75 13.49 13.84 --- --- --- --- --- --- --- --- Pacific Northwest 124 13.75 13.49 13.84 15.54 21.55 23.03 19.85 16.52 15.84 16.68 16.1

14.54 14.28 14.62 16.35 22.36 23.84 20.66 17.32 16.63 17.48 16.9

Table 36--Class I Milk Price, by Federal Milk Order Marketing Area, 2004 1/

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR MAY JUL 

2/ Effective April 1, 2004, the Western Federal milk order was terminated.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 9.52 8.72 8.65 8.63 12.03 12.96 12.04 9.75 10.27 10.39 

Southeast 007 9.27 8.41 8.29 8.58 12.13 12.55 12.20 9.76 10.17 10.48 Florida 006 10.90 9.85 9.46 9.72 14.13 15.29 14.12 10.96 11.51 11.92 Arizona-Las Vegas 131 7.49 6.84 6.96 8.99 11.23 10.54 9.27 8.34 8.79 8.65 

9.33 8.48 8.37 8.84 12.28 12.79 12.00 9.72 10.17 10.38 

Table 37--Uniform Skim Milk Price, by Federal Milk Order Marketing Area, 2004 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 1.4458 1.7359 2.1307 2.4078 2.4484 2.2958 2.0916 1.9289 1.8884 1.9046 2.0

Southeast 007 1.4492 1.7481 2.1737 2.4128 2.4460 2.2841 2.0927 1.9285 1.8899 1.9035 2.0Florida 006 1.4344 1.7078 2.1004 2.3895 2.4568 2.3371 2.1090 1.9757 1.8812 1.9100 2.0Arizona-Las Vegas 131 1.4737 1.7983 2.2768 2.4614 2.4363 2.2291 2.0710 1.8615 1.9128 1.9025 2.0

1.4495 1.7458 2.1652 2.4155 2.4470 2.2876 2.0915 1.9259 1.8917 1.9046 2.0

Dollars per Pound

Table 38--Uniform Butterfat Price, by Federal Milk Order Marketing Area, 2004 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 1.97 2.06 1.07 -2.38 -0.74 2.02 2.79 1.53 1.34 1.91 

Mideast 033 0.90 0.98 0.19 -3.78 -1.59 0.88 1.70 0.57 0.34 0.73 Upper Midwest 030 0.37 0.47 0.21 -4.11 -1.97 0.30 0.72 0.22 0.13 0.31 Central 032 0.69 0.77 0.14 -4.02 -2.18 0.55 1.18 0.42 0.21 0.54 Southwest 126 1.68 1.78 0.73 -3.48 -1.91 1.72 2.23 1.45 1.03 1.52 Western 2/ 135 0.52 0.64 0.20 --- --- --- --- --- --- --- Pacific Northwest 124 0.46 0.78 0.06 -4.32 -3.18 -0.23 0.89 0.11 -0.28 0.24 -All Markets Combined 1.00 1.12 0.53 -3.34 -1.58 0.93 1.62 0.73 0.60 0.91 

MAY JUN JUL

Table 39--Producer Price Differential, by Federal Milk Order Marketing Area, 2004 1/

AUG SEP OCT N

Dollars per Hundredweight

2/ Effective April 1, 2004. the Western Federal milk order was terminated.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.

Federal Milk Order 

Marketing Area

Order 

Number JAN FEB MAR APR
Northeast 001 13.58 13.95 15.56 17.28 19.84 19.70 17.64 15.57 16.06 16.07 1

Appalachian 005 14.25 14.49 15.80 16.76 20.18 20.54 18.94 16.16 16.52 16.69 1Southeast 007 14.02 14.23 15.61 16.72 20.27 20.11 19.10 16.17 16.43 16.78 1Florida 006 15.54 15.48 16.48 17.74 22.23 22.93 21.01 17.49 17.69 18.19 1Mideast 033 12.51 12.87 14.68 15.88 18.99 18.56 16.55 14.61 15.06 14.89 1Upper Midwest 030 11.98 12.36 14.70 15.55 18.61 17.98 15.57 14.26 14.85 14.47 1Central 032 12.30 12.66 14.63 15.64 18.40 18.23 16.03 14.46 14.93 14.70 1Southwest 126 13.29 13.67 15.22 16.18 18.67 19.40 17.08 15.49 15.75 15.68 1Arizona-Las Vegas 131 12.39 12.89 14.69 17.29 19.36 17.97 16.19 14.56 15.18 15.01 1Western 2/ 135 12.13 12.53 14.69 --- --- --- --- --- --- --- Pacific Northwest 124 12.07 12.67 14.55 15.34 17.40 17.45 15.74 14.15 14.44 14.40 1All Markets Combined 12.85 13.22 15.16 16.48 19.34 18.91 16.84 14.99 15.52 15.33 12/ Effective April 1, 2004, the Western Federal milk order was terminated.

SEP OCT 

Dollars per Hundredweight

FEB

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.

AUG Federal Milk Order Marketing Area

Table 40--Uniform Milk Price, by Federal Milk Order Marketing Area, 2004 1/

JAN MAR APR MAY JUN JUL N

Order Number
Northeast 001 7.51 7.91 0.43 1.11 --- --- 

Appalachian 005 7.28 --- --- --- --- 9.94 Southeast 007 7.37 --- --- --- --- 9.82 Florida 006 7.30 --- --- --- --- 11.29 Mideast 033 7.53 7.91 0.43 0.28 0.02 --- Upper Midwest 030 7.63 7.89 0.42 0.06 0.05 --- Central 032 7.51 7.91 0.43 0.09 0.05 --- Southwest 126 7.46 7.97 0.43 0.73 0.04 --- Arizona-Las Vegas 131 7.35 --- --- --- --- Western 8/ 135 7.07 6.11 0.10 --- --- Pacific Northwest 124 7.55 7.94 0.43 -0.39 --- --- 

Table 41--Value Provided by the Portions of the Uniform Milk Price at Test by Federal Milk Order Marketing Area, 2004 

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 psum 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

8/ Data are for January through March. Effective April 1, 2004, the order regulating this marketing area was terminated.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 pproducer milk (see Table 10 for protein tests).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 spounds of producer milk (see Table 11 for other solids tests).

Dollars

Order Number 

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 3annual 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).

Butterfat 2/ Protein 3/

57
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 16.96 3,843,930 255,597

Appalachian 005 17.22 1,068,222 312,986

Southeast 007 17.19 1,231,359 321,420

Florida 006 18.59 534,037 1,780,124

Mideast 033 16.17 2,576,730 259,228

Upper Midwest 030 16.05 2,777,604 232,261

Central 032 15.99 1,852,677 314,120

Southwest 126 16.63 1,461,888 1,693,961

Arizona-Las Vegas 131 15.71 455,795 4,747,869

Western 3/ 135 13.80 151,234 879,269

Pacific Northwest 124 15.52 1,011,891 1,216,216

All Markets Combined 16.46 16,965,368 324,119

at test.

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

and Per Producer, by Federal Milk Order Marketing Area, 2004

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

Gross Value of Milk Receipts 1/

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).

3/ Data are for January through March. Effective April 1, 2004, the order regulating this marketing area was terminated.

58
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 includes 

handlers regulated under the order whose marketing area is listed, and also could include 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 44 billion pounds of packaged fluid milk products were sold in all Federal milk order marketing 

areas in 2004. This volume was more than 82 percent of all the packaged fluid milk products sold in the 

United States. As a side note, about 80 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, 89%; handlers regulated under other Federal orders, 8%; and, handlers not regulated under 

any Federal milk order, 3%. For all Federal milk order marketing areas combined, more reduced fat (2%) 

milk is sold than any other fluid milk product. Reduced fat milk sales totaled 14.1 billion pounds versus 

14.0 billion pounds for whole milk. This is the first time that annual reduced fat (2%) milk sales have 

exceeded whole milk sales for all orders combined. 

Per capita sales of fluid milk products in 2004, for all markets in effect the entire year, were 186 pounds or 

about 21.6 gallons. The order with the highest volume of per capita in-area sales was the Pacific Northwest 

order, 217 pounds, 25.3 gallons. The Southeast order had the smallest per capita sales, 162 pounds, 18.8 

gallons. Orders with above-average per capita sales included: Upper Midwest, Central, and Mideast. 

Nearly 45 billion pounds of packaged fluid milk products were produced by the handlers regulated under 

the Federal milk order program in 2004. This volume was nearly 84 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), 14.40 billion pounds, followed by whole milk with 14.03 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 67 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 

Marketing Area NumberNortheast 001 845 748 844 787 780 746 785 755 794 815 Appalachian 005 309 275 308 288 273 267 286 297 292 293 Southeast 007 423 378 407 397 381 360 379 408 409 415 Florida 006 259 240 262 247 232 218 236 248 237 248 Mideast 033 565 500 554 519 505 467 507 512 525 533 Upper Midwest 030 380 345 379 366 351 329 346 348 363 373 Central 032 415 370 405 389 367 350 369 384 391 398 Southwest 126 374 336 364 353 333 324 332 354 358 361 Arizona-Las Vegas 131 113 109 114 111 103 102 104 108 104 105 Western 3/ 135 81 74 75 --- --- --- --- --- --- --- Pacific Northwest 124 187 167 187 179 176 170 174 174 182 183 All Markets Combined 3,950 3,541 3,900 3,636 3,501 3,333 3,518 3,589 3,655 3,723 

3/ Effective April 1, 2004, the Western Federal milk order was terminated.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, 2004 1/ 2/

Million Pounds

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

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

60
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent 

Whole milk products 2/ 14,909.6 3.29 3,889.3 3.26 1,290.7 3.30  Whole milk 13,995.2 3.26 3,773.7 3.23 1,213.9 3.26  Flavored whole milk 757.7 3.38 69.8 3.40 64.7 3.46  Eggnog 118.3 6.79 33.3 6.77 8.4 7.16 Fat-reduced milk products 2/ 29,031.9 1.29 5,672.3 1.16 2,190.8 1.34  Reduced fat milk (2%) 14,141.6 1.96 2,057.8 1.98 1,161.7 1.97  Low fat milk (1%) 4,986.9 0.98 1,587.1 1.00 238.2 0.99  Fat-free milk (skim) 6,452.4 0.11 1,425.5 0.10 434.2 0.14  Flavored fat-reduced milk 2,902.5 1.11 562.8 1.26 227.6 1.06  Buttermilk 427.4 1.34 32.5 1.33 64.3 1.21 Total fluid milk products 2/ 43,941.5 1.97 9,561.7 2.01 3,481.6 2.07 See footnotes on page 63.

Product Name

Table 44--Sales of Fluid Milk Products in Federal Milk Order Marketing Areas, by Product, by Order, 2004 1

Butterfat 

Content

Butterfat 

Content

T

All Markets Combined

Total Sales

Northeast Appalachian

Total Sales Total Sales Butterfat Content

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

Whole milk products 2/ 1,297.0 3.33 1,597.2 3.30 779.5 3.31  Whole milk 1,222.8 3.29 1,461.1 3.25 698.5 3.28  Flavored whole milk 58.0 3.51 118.3 3.50 69.1 3.36  Eggnog 9.8 7.28 16.3 6.01 8.9 6.25 Fat-reduced milk products 2/ 1,641.0 1.25 4,692.5 1.37 3,563.0 1.16  Reduced fat milk (2%) 774.7 1.97 2,635.7 1.96 1,574.7 1.96  Low fat milk (1%) 291.5 1.01 595.9 0.86 579.8 0.97  Fat-free milk (skim) 403.2 0.11 915.2 0.11 1,036.1 0.10  Flavored fat-reduced milk 154.4 1.03 491.2 1.15 336.5 0.96  Buttermilk 16.3 1.12 53.1 1.77 28.3 1.10 Total fluid milk products 2/ 2,938.0 2.16 6,289.7 1.86 4,342.5 1.54 See footnotes on page 63.

Table 44--Sales of Fluid Milk Products in Federal Milk Order Marketing Areas, by Product, by Order, 2004 1/--C

Product Name

Florida Mideast Upper Midwest 

Total Sales Butterfat Content Total Sales 

Butterfat Content Total Sales Butterfat Content T

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

Whole milk products 2/ 1,958.3 3.31 430.3 3.30 43.6 3.30  Whole milk 1,835.9 3.29 404.5 3.28 41.5 3.28  Flavored whole milk 113.0 3.71 20.3 3.07 2.1 3.55  Eggnog 1.2 7.47 5.5 6.07 5/ 7.36 Fat-reduced milk products 2/ 2,261.8 1.37 860.2 1.38 186.9 1.38  Reduced fat milk (2%) 1,194.8 1.89 482.2 1.96 90.6 2.00  Low fat milk (1%) 357.6 1.03 142.5 0.99 45.2 1.00  Fat-free milk (skim) 339.4 0.11 165.9 0.09 30.5 0.16  Flavored fat-reduced milk 299.5 1.10 58.6 1.24 18.4 1.26  Buttermilk 48.8 1.56 10.3 1.06 1.7 1.10 Total fluid milk products 2/ 4,220.1 2.27 1,290.5 2.02 230.5 1.74 4/ Data are for January through March. Effective April 1, 2004, the order regulating this marketing area was terminated.

Butterfat 

Content Total Sales Butterfat Content T

Table 44--Sales of Fluid Milk Products in Federal Milk Order Marketing Areas, by Product, by Order, 2004 1/--C

Product Name

Southwest Arizona-Las Vegas 3/ Western 4/ 

Total Sales Butterfat Content Total Sales

5/ Less than 500,000 pounds.3/ The in-area sales data for this order does not include all the sales in the marketing area due to the reporting exemption of fluid milk proc

Clark County, Nevada.1/ Includes sales in each area by handlers regulated under the respective order, by handlers regulated under other orders, by partially regulaexempt handlers, and by producer-handlers. (See page 6 for the definitions of these handler types.) Sales routes of some handlers may extmarketing 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 14,032.8 3.27 3,873.7 3.27 1,549.6 3.26 Flavored whole milk 782.6 3.35 109.3 3.04 72.1 3.50 Eggnog 121.3 6.75 41.1 6.73 10.6 6.82 Reduced fat milk (2%) 14,402.0 1.96 2,348.1 1.99 1,455.6 1.98 Low fat milk (1%) 5,102.8 0.98 1,749.1 1.00 284.2 0.99 Fat-free milk (skim) 6,609.2 0.11 1,652.3 0.10 527.1 0.15 Flavored fat-reduced milk 2,887.1 1.12 672.4 1.39 238.8 0.94 Buttermilk 426.4 1.33 29.3 1.17 81.4 1.16 Miscellaneous milk products 357.5 2.03 198.4 2.71 68.9 0.52 Total fluid milk products 44,721.6 1.96 10,673.7 2.00 4,288.3 2.09 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 1,076.9 3.29 1,525.9 3.26 673.2 3.25 Flavored whole milk 52.0 3.55 115.6 3.44 68.8 3.39 Eggnog 8.9 7.30 14.1 5.82 8.0 6.32 Reduced fat milk (2%) 667.3 1.97 2,661.6 1.96 1,647.5 1.95 Low fat milk (1%) 261.5 1.02 615.9 0.86 570.7 0.97 Fat-free milk (skim) 348.6 0.10 916.4 0.11 1,063.3 0.10 Flavored fat-reduced milk 119.6 0.83 486.7 1.12 322.6 0.92 Buttermilk 14.4 1.07 54.0 1.79 28.0 1.11 Miscellaneous milk products 9.5 1.67 4.4 2.47 14.4 1.64 Total fluid milk products 2,558.8 2.17 6,394.5 1.87 4,396.5 1.52 

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 1,823.9 3.26 276.4 3.25 54.5 3.27 Flavored whole milk 112.3 3.77 19.6 2.97 7.5 3.66 Eggnog 0 --- 5.2 5.91 3/ --- Reduced fat milk (2%) 1,153.1 1.88 367.8 1.94 120.0 2.00 Low fat milk (1%) 345.1 1.03 120.3 0.98 46.9 1.00 Fat-free milk (skim) 328.5 0.11 124.2 0.09 32.1 0.16 Flavored fat-reduced milk 293.7 1.13 46.0 1.21 22.1 1.30 Buttermilk 46.3 1.59 7.2 1.05 2.0 1.10 Miscellaneous milk products 35.3 1.65 0.0 --- 3/ --- Total fluid milk products 4,138.1 2.27 966.7 1.96 285.3 1.85 2/ Data are for January through March. Effective April 1, 2004, the order regulating this marketing area was terminated.

Volume Butterfat Content Volume 

Butterfat Content Volume Butterfat Content 

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

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 2/ 

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. “Other 

source” milk is milk and dairy products received from other order plants or unregulated plants. The 

comparability of some of the statistics in this section also is affected by handler decisions not to pool producer 

milk due to disadvantageous price relationships. 

During 2004, over 59.0 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, 41.9 percent of this volume was used in Class III products, 38.1 percent in Class 

II, 19.7 percent in Class IV, and 0.3 percent in other uses (milk and dairy products that were dumped, used for 

animal feed, or destroyed). It should be noted that effective May 1, 2004, milk, skim milk, and cream used to 

produce evaporated milk in consumer-type packages and sweetened condensed milk in consumer-type packages 

was reclassified from Class III to Class IV. 

There were 15.5 billion pounds of milk, skim milk, and cream used to produce Class II products in 2004. The 

butterfat test of this volume was 7.15 percent. On a volume basis, the largest Class II volume was used in 

frozen desserts, 6.0 billion pounds with 8.32 percent butterfat content, followed by cottage cheese, 3.2 billion 

pounds with 1.50 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 31.1 billion pounds of milk, skim milk, and cream which had a butterfat test 

of 3.92 percent. The largest Class III volume was used in American cheese, 15.6 billion pounds with 3.85 

percent butterfat content, followed by Italian cheese, 10.0 billion pounds with 3.29 percent butterfat content. 

The order with the largest volume of Class III production was the Upper Midwest, 8.8 billion pounds, followed 

by the Mideast order with 5.8 billion pounds. These two orders accounted for 47 percent of total Class III 

production in all Federal milk orders. 

There were 12.1 billion pounds of milk, skim milk, and cream used to produce Class IV products in 2004. The 

butterfat content of this volume was 4.74 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 Upper Midwest, 2.5 billion pounds. About 0.3 billion pounds of milk, skim 

milk, and cream were used in “other uses” in 2004. This use would have been Class III in February; Class IV in 

January, and March through December. 
Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percent Mil. lbs. Percen

Northeast 001 970.6 17.70 286.1 12.94 1,016.9 1.64 1,470.4 7.43 431.9 1.65 Appalachian 005 78.7 20.64 22.6 15.38 205.1 3.21 431.4 6.83 25.0 0.66 Southeast 007 69.5 16.01 17.1 16.97 75.6 0.79 696.2 7.54 5/ --- Florida 006 66.9 18.28 5/ --- 5/ --- 172.6 11.55 5/ --- Mideast 033 90.8 26.16 125.4 11.96 596.8 2.31 1,010.1 8.78 763.4 2.38 Upper Midwest 030 213.3 17.99 139.7 14.38 274.0 1.12 546.7 8.83 69.4 1.33 Central 032 72.1 21.02 85.1 16.36 603.5 0.76 746.0 7.90 157.5 0.80 Southwest 126 136.2 19.23 240.9 11.88 126.1 0.87 683.2 7.22 122.9 1.63 Arizona-Las Vegas 131 5/ --- 5/ --- 5/ --- 102.4 21.34 5/ --- Western 6/ 135 5/ --- 4.7 15.44 5/ --- 29.0 11.30 5/ --- Pacific Northwest 124 104.6 20.41 48.5 12.06 172.8 0.47 136.7 14.54 82.1 0.81 All Markets Combined 1,839.9 18.60 991.1 13.18 3,210.1 1.50 6,024.7 8.32 1,726.5 1.78 

Fluid Cream Products 2/

Volume

Sour Cream Products Cottage Cheese 3/

Butterfat Content Volume Volume

Yogurt 

Volume Volume

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

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.6/ Data are for January through March. Effective April 1, 2004, the order regulating this marketing area was terminated.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 pro are manufactured. 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 2/ Includes milk and cream mixtures, light cream, and heavy cream.3/ Includes ricotta cheese.

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

Northeast 001 1,799.7 3.54 2,780.7 3.22 557.6 10.67 255.8 3.73 

.

Appalachian 005 240.8 6.98 19.2 3.68 0 --- 3/ --- Southeast 007 869.1 4.65 0 --- 0 --- 0 --- Florida 006 96.2 5.63 0 --- 0 --- 0 --- Mideast 033 1,242.6 3.08 2,545.5 3.13 0 --- 1,956.1 4.03 Upper Midwest 030 4,857.3 3.79 2,290.4 3.63 3/ --- 1,460.0 4.47 Central 032 1,916.6 3.81 2,154.6 3.27 41.2 16.71 129.5 4.02 Southwest 126 1,796.6 3.37 0 --- 49.4 22.20 3/ --- Arizona-Las Vegas 131 3/ --- 0 --- 3/ --- 17.6 43.38 Western 4/ 135 3/ --- 3/ --- 3/ --- 419.1 3.77 Pacific Northwest 124 1,637.2 3.96 3/ --- 6.7 43.69 223.9 4.88 All Markets Combined 15,552.7 3.85 9,980.2 3.29 655.2 12.27 4,468.6 4.34 4/ Data are for January through March. Effective April 1, 2004, the order regulating this marketing area was terminated.3/ Data are restricted; pertains to the operations of fewer than three firms. Data are included in All Markets Combined.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. 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 2/ Includes listed cheeses, evaporated or sweetened condensed milk in consumer-type packages (January through April only), 80% milkfat product in other products, and restrict

American Cheese

Volume

Italian Cheese Cream Cheese

Volume Volume

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

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

Northeast 001 169.6 50.12 1,613.7 0.09 175.8 4.55 2,244.7 4.45 9

Appalachian 005 91.4 17.01 79.3 1.70 0 --- 182.3 9.26 3Southeast 007 187.0 17.40 4/ --- 0 --- 273.5 11.91 6

Florida 006 18.0 24.34 0 --- 0 --- 39.4 11.11 1

Mideast 033 151.3 39.13 344.5 0.17 79.2 6.46 639.8 10.38 1

Upper Midwest 030 433.5 21.20 1,224.5 0.47 301.8 0.65 2,530.1 4.75 

Central 032 100.4 39.41 788.0 3.65 0 --- 1,036.4 7.09 3

Southwest 126 478.7 12.26 1,504.3 0.11 4/ --- 2,012.9 3.12 4Arizona-Las Vegas 131 27.6 24.62 4/ --- 4/ --- 794.2 0.92 

Western 5/ 135 21.7 36.09 4/ --- 0 --- 98.1 8.45 

Pacific Northwest 124 207.9 38.86 2,050.2 0.09 0 --- 2,271.0 3.64 

All Markets Combined 1,887.2 25.56 8,367.4 0.51 695.1 2.37 12,122.4 4.74 3

restricted data per 4/.5/ Data are for January through March. Effective April 1, 2004, the order regulating this marketing area was terminated.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 prodare manufactured. 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 thi2/ Includes listed product groupings, evaporated or sweetened condensed milk in consumer type packages ( May through December only), nonfat solids used to fortify fluid milk p3/ 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 February; and Class Iother months.

Vo

Butter

Volume

Nonfat Dry Milk Other Dry Milk

Volume Volume

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 Order

Butterfat 

Content

Butterfat 

Content

Butterfat 

Content

Butterfat 

Content

Total Class IV 2/ 

Volume

70
SCHEDULE OF FEDERAL MILK ORDER MARKET ADMINISTRATOR BUDGETS 1/, BY OFFICE LOCATION 2/, CALENDAR YEA

- AMOUNTS IN DOLLARS -

ALL MARKE

T

ATLANTA, KANSAS CITY, LOUISVILLE, 

ADMINISTRATORS GEORGIA 5/ KANSAS 6/ KENTUCKY 7/ MAS

EXPENSES 2004 2005 2004 2005 2004 2005 2004 2005 20

Group Authorization 3/ 16,786,458 17,536,790 1,569,000 1,626,540 2,147,500 2,135,500 1,210,500 1,243,500 4,03Salaries and Services 31,765,866 31,874,050 3,282,540 3,300,000 4,000,000 3,900,000 2,125,000 2,219,000 7,76Travel 2,924,500 3,005,300 239,000 236,000 405,000 405,000 238,000 256,000 69Conferences & Meetings 192,800 200,500 19,900 15,000 30,000 30,000 26,000 15,000 2

Miscellaneous 4/ 1,053,250 973,350 36,900 24,000 182,000 212,000 83,500 83,500 9Total Expenses 52,722,874 53,589,990 5,147,340 5,201,540 6,764,500 6,682,500 3,683,000 3,817,000 12,61

Administrative Fund 45,576,900 46,646,409 4,449,456 4,681,386 6,494,500 6,348,500 3,015,225 3,194,020 9,76

Marketing Service Fund 7,145,974 6,943,581 697,884 520,154 270,000 334,000 667,775 622,980 2,84Total Expenses 52,722,874 53,589,990 5,147,340 5,201,540 6,764,500 6,682,500 3,683,000 3,817,000 12,61

MINNEAPOLIS, CLEVELAND, DALLAS, SEATTLE,

MINNESOTA 9/ OHIO 10/ TEXAS 11/ WASHINGTON 12/

EXPENSES 2004 2005 2004 2005 2004 2005 2004 2005

Group Authorization 3/ 2,666,500 2,582,500 2,552,000 2,645,000 1,199,000 1,338,000 1,405,802 1,376,750Salaries and Services 5,800,000 5,675,000 3,550,000 3,725,000 2,800,000 2,980,000 2,443,326 2,125,050Travel 392,000 360,000 445,000 445,000 169,200 209,000 342,500 364,300Conferences & Meetings 30,000 30,000 20,000 22,000 20,000 20,000 19,900 17,500

Miscellaneous 4/ 250,000 277,000 51,000 48,000 137,200 132,000 218,650 96,850Total Expenses 9,138,500 8,924,500 6,618,000 6,885,000 4,325,400 4,679,000 4,430,178 3,980,450

Administrative Fund 9,094,500 8,885,232 4,292,480 4,527,610 4,325,400 4,679,000 4,136,983 3,713,152

Marketing Service Fund 44,000 39,268 2,325,520 2,357,390 0 0 293,195 267,298Total Expenses 9,138,500 8,924,500 6,618,000 6,885,000 4,325,400 4,679,000 4,430,178 3,980,450

71
SCHEDULE OF FEDERAL MILK ORDER MARKET ADMINISTRATOR BUDGETS 1/, BY OFFICE LOCATION 2/, CALENDAR YEARS 2004 AND 2005 - CO

1/ Market Administrators' budgets are estimated expenses for the calendar year as reviewed and approved by the Deputy Administrator, Dairy Programs, AgriculturalMarketing Service, United States Department of Agriculture. Expenses include any amounts revised as of January 28, 2005. Full disclosure of actual expenses isprovided in each market administrator's annual financial statements.2/ Budget amounts include expenses for all orders serviced by the same market administrator and are listed under each market administrator's main office location.3/ Group Authorization includes the following expenses: Communications; employee insurance, retirement and thrift savings plan; insurance; rent; research projects;supplies; testing and weighing; utilities; and depreciation.4/ Miscellaneous includes the following expenses: Training; uncollectible accounts; interest; subscriptions; licenses and fees; service charges; and other.5/ Includes the Florida and Southeast milk marketing orders.6/ Includes the Central milk marketing order.7/ Includes the Appalachian milk marketing order.8/ Includes the Northeast milk marketing order.9/ Includes the Upper Midwest milk marketing order.10/ Includes the Mideast milk marketing order.11/ Includes the Southwest milk marketing order.12/ Includes the Pacific Northwest and Arizona-Las Vegas milk marketing orders, and the Western order for January through March 2004.

72