KY and TN Farm Bureau Meeting 

Knoxville, TN

May 16, 2018 

Presented by: 

Dana Coale, Deputy Administrator, Dairy Program

Harold Friedly, Market Administrator, Appalachian Marketing Area

Erin Taylor, Acting Director, Dairy Program Order Formulation and Enforcement 

Shawn Boockoff, Assistant Market Administrator, Northeast and Southeast Marketing Areas

Steven Duprey, Supervisory Economist, Southeast Marketing Area

John Herbert, Agricultural Economist, Appalachian Marketing Area
Agenda 

• Dairy Market Overview 

• Federal Milk Marketing Order (FMMO) Overview 

• Rulemaking process 

• Multiple Component Pricing Proposal and Analysis 

• Market Information: Southeast and Appalachian Orders 
Dairy Market Overview 
 

2

3

4 

5

6

7 

8 

9 

Largest Dairy Processors in North America 

1

2002 

Sales 

(Billion) 

Plants 

2017 

Sales 

(Billion) 

Plants 

. Dean Foods Co. 8.1 113 1. Nestle USA 12.1 9 

. Kraft Foods 4.1 18 2. Dean Foods Co. 7.7 66 

. Land O’Lakes, Inc. 2.9 12 3. Saputo Inc. 7.1 50 

. Saputo Inc. 2.5 47 4. DanoneWave 6.0 15 

. Schreiber Foods 2.3 16 5. Kraft Heinz Co. 5.7 10 

. National Dairy Holdings 2.1 32 6. Schreiber Foods 5.0 28 

. Kroger Co. 1.9 18 7. Agropor Cooperative 4.5 39 

. Parmalat Canada 1.8 28 8. Dairy Farmers of America, 

Inc. 4.2 41 

. Dairy Farmers of America, 

Inc. 1.6 27 9. Lactalis American Group 3.9 21 

10. Leprino Foods Co. 1.5 10 10. Land O’Lakes, Inc. 3.8 8 

Source: Dairy Foods Magazine 
 60 

Sales Fluid Milk (Bil. Lbs.) 

Fluid Milk Consumption 

50 

100 

150 

200 

10 

20 

30 

40 

50 

Per Capita Total Fluid Whole 

Since 2010, Average Decline 

of 1.7% in Total Fluid Milk Sales 

Source: USDA/ERS 

USDA/AMS 

199019911992199319941995199619971998

1999

200020012002

2003

2004

200520062007200820092010201120122013201420152016 

250 

0 

Per Capita (Lbs.) 

0 
U.S. Monthly Milk Production 

Billion Pounds 

20 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 

Percentage Change from Prior Year 

Average = + 1.6% 

7.0% 

6.0% 

5.0% 

4.0% 

3.0% 

2.0% 

1.0% 

0.0% 

-1.0% 

-2.0% 

-3.0% 

Source: USDA/NASS/Milk Production 
 

U.S. Exports 

Percentage of Total Solids Production 

3.9% 

15.2% 

14.5% 

0% 

2% 

4% 

6% 

8% 

10% 

12% 

14% 

16% 

Source: USDA/ERS 
 

 

 

 

 

FO 5 Milkshed – 2017 

Appalachian Marketing Area 

Other Southwest 1.9% 

Southeast 1.5% 

5.5% 

FO 5 Producer Milk 

By the Marketing Area 

Location of Producer 

Appalachian + Southeast+ Unregulated = 69% 

Unregulated Area = Mainly Virginia counties 

outside of FO 5 

Appalachian

55.9% 

Mideast 

20.8% 

Unregulated

7.6% 

Northeast 

6.8% 
 

 

 

Class I Pounds increased in 2016 and 2017 (+3.1%) 

Due to shift in sales to pool plants from an unregulated 

plant closure and increased packaged transfers and 

400 

380 route sales to other areas from FO 5 pool plants 

360 

340 

320 

300 

280 

260 

FO 5 Route Sales 

Total Class I 

Million Lbs. 

240 
 

 

FO 7 Milkshed – 2017 

Southeast Marketing Area 

Other 

Central 

14.6 

Southeast 

56.6 

Southwest 

11.0 

Florida 

Appalachian 0.6 6.1 

Mideast 

7.8 

FO 7 Producer Milk 

By the Marketing Area 

Location of Producer 

Appalachian + Southeast = 63% 

3.1 
Million Lbs. 

490 

440 

390 

340 

290 

240 

FO 7 Route 

Sales 

Total Class I PM 

-1.5%/yr loss of 

route sales 

17 -2.1% -1.9% 

09-17 -13.7% -20.6% 

FO 7 Sales FO 7 Class I 

15 -1.1% 0.0% 

16 -0.3% -1.7% 
Federal Milk Marketing Order Overview 
 

 

 

 

 

FMMO Authorization 

• Authorized by the Agricultural Marketing Agreement Act of 

1937, as amended (AMAA). The AMAA enables USDA to: 

▫ Establish and maintain orderly marketing conditions 

▫ Establish classified prices based on how milk is used (handler) 

▫ Establish uniform blend prices (producer) 

• FMMOS are permanent law 

• FMMOs are not a price or income support program. 

• USDA is not authorized to administer regulation beyond the 

scope of authority provided by Congress 
FMMO Purpose and Objectives 

Purpose: 

• Ensure an adequate supply of fluid milk for processors

and consumers 

Objectives: 

• Establish monthly, market-based minimum prices paid 

to farmers 

• Ensure proper payments by:  Auditing handler records 

 Verifying milk weights and tests 

 Enforcing timely payments 

• Provide timely market information 
 

 

 

 

A Federal Milk Order DOES: 

• Regulate fluid milk processors 

• Provide a framework to make buying and selling milk a more orderly 

process 

• Allow market supply and demand conditions to determine the basic 

price of milk 

• Enforce timely minimum payments to producers 

• Promote equity among handlers by establishing identical minimum 

class prices for all handlers similarly located 

• Provide market statistics and economic analysis 
 

 

A Federal Milk Order Does NOT: 

• Regulate producers or guarantee a market for milk 

• Regulate from whom a handler may buy milk 

• Set wholesale, retail milk, or maximum prices to producers 

• Restrict production 

• Establish sanitary or quality standards 

• Change without industry initiation 

 FMMO changes must be industry-driven

• Insulate producers from market signals 
 

 

 

FMMO Pooling Standards 

Standards are: 

• Tailored to the local market 

• Performance-based 

• Designed to encourage service to Class I market 

Standards determine: 

 Plants eligible to pool their milk supply 

 Producers eligible to have their milk pooled 

 Milk eligible to be pooled 
 

 

FMMO Pooling Provisions 

• Class I fully regulated plants must pool all their milk 

• Class II, III, and IV manufacturing plants have the option 

to pool 

• Farmers must be qualified as a producer so their milk is 

eligible for pooling 

• Handlers make pooling decisions 
 

 

 

 

 

 

FMMO Pooling Provisions 

Route Disposition Standard: 

Purpose: Defines what fluid milk handlers/plants supply the fluid beverage

needs of the marketing area 

Southeast/Appalachian Orders: 

* 50% of plants total milk receipts made into fluid milk products 

* 25% of the plants fluid milk products are distributed in the 

marketing area 

Shipping Standard: 

Purpose: Defines manufacturing handlers/plants demonstrating service to the Class I 

market by supplying the fluid processing plants 

Southeast/Appalachian Orders: 

* 50% of total milk receipts 

* 60% of total milk receipts (cooperatives owned plant) 
 

 

 

 

 

 

FMMO Pooling Provisions 

Diversion Limits: 

Purpose: Balance milk supply of the market while ensuring efficient disposition of 

fluid milk supply. 

• Market milk needs fluctuate. Diversions allow additional supply to pool so fluid 

needs can always be met 

• Diverted milk can be priced and pooled on the order even when it is not 

received at a pool plant 

Standard: 

25%: Jan-Feb, July-Nov 

35%: March-June, Dec 

Touch Base Provisions: 

Purpose: Define what producers are able to supply the market’s fluid needs. 

Once eligible, the producers’ milk can be diverted to nonpool plants 

Standard: 1 day’s production physically received at a pool plant, per month 
 

 

 

 

 

Transportation Credit Provisions 

Purpose: 

• Assist handlers in obtaining supplemental milk when needed 

• Transportation credits are paid through an assessment on the handler, 

not producer 

FO 5 Transportation Credit: $0.15/cwt per month, July – Feb payout 

effective July 1, decreased to $0.10/cwt 

FO 7 Transportation Credit: $0.30/cwt per month, July – Feb payout 
 

 

Base-Excess Plans 

Purpose: Provided producers with price incentives to shift production to more

closely mirror consumption (i.e. increase production during the fall) 

Base-Excess Plan Legislative Timeline 

Authority to administer 

these plans expired in 

1995. 
 

 

 

Rulemaking Process 

• Industry-driven—changes are proposed by the industry, not 

USDA 

• All-inclusive—anyone can participate during the hearing or the 

public comment period 

• Transparent—decisions are based solely on the proceeding 

record; ex-parte restrictions apply 

• Producer-approved—producers must approve any change via a 

voting process 
Rulemaking Process 

Prior to and During Hearing: 

USDA receives 

proposal 

USDA issues 

Action Plan and 

Request for

Additional 

Proposals 

USDA issues 

Notice of Hearing 

Proponents

request USDA

data and 

witnesses submit 

testimony 

USDA holds public

hearing 

Parties file 

transcript 

corrections 

Participants file

post-hearing 

briefs 

USDA issues a 

recommended 

decision 

Parties file 

comments and 

exceptions to 

recommended 

decision 

USDA issues a final 

decision 

Prior to Producer Vote: 

Prior to Implementing a Change: 

Affected USDA issues final USDA issues producers vote USDA implements USDA determines rule or ballots to affected whether to accept order (if approved producer approval termination of producers provisions: all or by producers) proceeding nothing 
 

Producer Approval Process 

USDA issues a 

Final Decision 

Affected 

producers vote

on proposed 

FMMO 

USDA 

determines 

producer 

approval 

USDA issues 

final rule or 

termination of 

proceeding 

USDA 

implements 

order (if 

approved by 

producers) 

 Each producer gets a single vote. 

 A USDA-FMMO approved Cooperative may bloc-vote on behalf 

of its members. 

 Votes are on the entire order as proposed, not individual 

provisions. 
 

Producer Approval Determination 

USDA issues a 

Final Decision 

USDA Affected USDA USDA issues implements producers vote determines final rule or order (if on proposed producer termination of approved by FMMO approval proceeding producers) 

 The order will be approved if “YES” ballots are received by: 

2/3 of voting producers OR 

2/3 of voting milk volume 
Multiple Component Pricing Proposal 
 

 

 

 

MCP Proposal: Where are we in the process? 

USDA receives 

proposal 

USDA issues 

Action Plan and 

Request for

Additional 

Proposals 

USDA determines 

producer approval 

Parties file 

transcript 

USDA issues a 

corrections decision 

recommended 

Proponents

request USDA

data and 

witnesses submit 

testimony 

USDA issues final 

rule or 

termination of 

proceeding 

Parties file 

comments and 

exceptions to 

recommended 

decision 

USDA holds public

hearing 

USDA issues a final 

decision 

USDA issues 

Notice of Hearing 

Participants file

post-hearing 

briefs 

Affected 

USDA issues producers vote USDA implements

ballots to affected whether to accept order (if approved 

producers provisions: all or by producers) 

nothing 

• Action Plan is required by FMMO regulations 

• Additional Proposals are due June 1, 2018 

• A decision on whether to hold a hearing has not yet been made 
 

 

 

 

 

 

 

 

Multiple Component Pricing Proposal 

Current System: 

Proposed System: 

On behalf of 14 cooperative 

associations and 4 producer trade 

associations, National All-Jersey, 

Inc. submitted a proposal to adopt 

multiple component pricing in the 

Southeast and Appalachian milk 

marketing orders. 

Skim & Fat Pricing 

Producers in the Southeast 

and Appalachian markets are 

paid for the butterfat and 

skim milk they produce. 

Multiple Component Pricing with 

Somatic Cell Adjustment 

A MCP model pays producers for 

butterfat and the solids content of 

their skim milk (protein and other 

nonfat solids). 

Currently, producer payments in 

the Southeast and Appalachian 

markets are not adjusted to 

account for somatic cell levels. 
FMMO Skim and Fat Pricing Areas 
Pricing under Fat and Skim Orders 
 

 

 

 

 

 

 

 

 

 

 

How are handler prices currently determined? 

Under Fat and Skim orders, handlers pay on: 

1. Pounds of fat purchased ($/lb) 

 Class I butterfat price: Advanced butterfat price 

 Class II butterfat price: butterfat price + $0.007 

 Class III and Class IV butterfat prices: butterfat price 

2. CWT of skim purchased ($/cwt) 

 Class I Skim: Higher of Advanced Class III or IV skim price + differential 

 Class II Skim: Advanced Class IV skim price + $0.70 

 Class III Skim: Protein, Other Solids 

 Class IV Skim: Nonfat Solids 

 3.1 pounds of protein in skim 

 5.9 pounds of other solids 

 9 pounds of nonfat solids 
 

 

 

Dairy Products Mandatory Reporting Program 

• Weekly mandatory survey of wholesale prices for: 

• Cheese 

• Butter 

• Nonfat Dry Milk 

• Dry Whey 

• Participating plants produce > 1 million pounds annually 

• Data verified by FMMO auditors 

• Weekly survey prices feed into monthly average product 

prices 

• Monthly average product prices are used to determine 

raw milk values 
 

How are handler prices announced? 

FMMO skim and fat prices: 

• AMS’s Announcement of Class and Component Prices 

• Released on or before the 5th of the following month 

• Contains prices for: 

• Class II Butterfat 

• Class II Skim 

• Class III Skim 

• Class IV Skim 

• Butterfat 
 

 

 

 

How are producers currently paid? 

FMMO skim and fat prices: 

• 

• Total Butterfat Value: 

Total Skim Value: 

▫ Class I + Class II + Class III + Class IV Skim Dollars 

▫ Class I + Class II + Class III + Class IV Butterfat Dollars 
 

 

 

 

 

 

How are producers currently paid? 

FMMO skim and fat prices: 

• Total Skim Value: 

▫ Class I + Class II + Class III + Class IV Skim Dollars 

• Total Butterfat Value: 

▫ Class I + Class II + Class III + Class IV Butterfat Dollars 

• Uniform Skim Milk Price: 

▫ Total Producer Skim Dollars/Total Skim Pounds 
 

 

 

 

How are producers currently paid? 

• Total Skim Value: 

▫ Class I + Class II + Class III + Class IV Skim Dollars 

• Total Butterfat Value: 

▫ Class I + Class II + Class III + Class IV Butterfat Dollars 

FMMO skim and fat prices: 
 

 

 

 

How are producers currently paid? 

FMMO skim and fat prices: 

• Total Skim Value: 

▫ Class I + Class II + Class III + Class IV Skim Dollars 

• Total Butterfat Value: 

▫ Class I + Class II + Class III + Class IV Butterfat Dollars 

• Uniform Butterfat Price: 

▫ (=Total Butterfat Dollars/Total Butterfat Pounds) 
 

How is my payment calculated? 

Pounds of butterfat produced x average butterfat price 

+ Pounds of skim milk produced x average skim milk price 

+/ - (cwt of milk x Location Adjustment) 

- Authorized Deductions 

= Producer Payment 
 

 

Pricing—Location Adjustment: FO 5 

 Order Blend price announced at the Charlotte

$3.40 zone 

 Prices received by producers will reflect location 

pricing (by the plant of first receipt) 

Examples:

▫ If you deliver to a plant located in the $4.00 

zone 

Your blend = announced blend + $0.60 / cwt 

▫ If you deliver to a plant located in the $2.90 

zone 

Your blend = announced blend - $0.50 / cwt 
 

 

 

Pricing—Location Adjustment: FO 7 

 Order Blend price announced at the Atlanta

$3.80 zone 

 Prices received by producers will reflect location 

pricing (by the plant of first receipt) 

Examples:

▫ If you deliver to a plant located in the $3.20 

zone 

Your blend = announced blend - $0.60 / cwt 

▫ If you deliver to a plant located in the $4.60 

zone 

Your blend = announced blend + $0.80 / cwt 
Pricing under MCP Orders 
 

 

 

 

 

Butterfat Price: 

▫ (NDPSR butter price - $0.1715) * 1.211 

Pricing— Handler Component Price Calculations 

FMMO component prices: 

• 

• Nonfat solids Price: 

▫ (NDPSR NFDM price - $0.1678) * .99 

• Protein Price: 

▫ (NDPSR cheddar cheese price - $0.2003) * 1.383 

– (Butterfat adjustment) 

• Other Solids Price: 

▫ (NDPSR dry whey price - $0.1991) * 1.03 
 

 

 

 

 

Pricing— Handler Component Price Calculations 

FMMO component prices: 

• Butterfat Price: 

▫ (NDPSR butter price - $0.1715) * 1.211 

• 

• 

Nonfat solids Price: 

▫ (NDPSR NFDM price - $0.1678) * .99 

Protein Price: 

▫ (NDPSR cheddar cheese price - $0.2003) * 1.383 

– (Butterfat adjustment) 

• Other Solids Price: 

▫ (NDPSR dry whey price - $0.1991) * 1.03 
 

 

 

 

 

Pricing— Handler Component Price Calculations 

FMMO component prices: 

• Butterfat Price: 

▫ (NDPSR butter price - $0.1715) * 1.211 

• Nonfat solids Price: 

▫ (NDPSR NFDM price - $0.1678) * .99 

• 

• 

Protein Price: 

▫ (NDPSR cheddar cheese price - $0.2003) * 1.383 

– (Butterfat adjustment) 

Other Solids Price: 

▫ (NDPSR dry whey price - $0.1991) * 1.03 
 

 

 

 

 

• 

Pricing— Handler Component Price Calculations 

FMMO component prices: 

• Butterfat Price: 

▫ (NDPSR butter price - $0.1715) * 1.211 

• Nonfat solids Price: 

▫ (NDPSR NFDM price - $0.1678) * .99 

• Protein Price: 

▫ (NDPSR cheddar cheese price - $0.2003) * 1.383 

– (Butterfat adjustment) 

Other Solids Price: 

▫ (NDPSR dry whey price - $0.1991) * 1.03 
 

 

 

 

 

 

Pricing – Producer Component Pricing 

Producer Payment Includes: 

 Prices per pound of the Class III values of butterfat, true 

protein, and other solids contained in your milk pooled. 

 Producer Price Differential (PPD) 

• The PPD is the remaining market value of your milk after 

accounting for the Class III component values. 

• The PPD is paid on a per hundredweight (cwt) basis. 

• The PPD is adjusted by location. The adjustment is the 

difference between the announcement zone in your

Order, and the location of the plant where your milk is

delivered. 

FO 5 announcement zone: $3.40 in Mecklenburg County, NC 

FO 7 announcement zone: $3.80 in Fulton County, Georgia 
 

What is the Producer Price Differential? 

Producer Price Differential: 

= $0.00/cwt, if pool classified value is equal to Class III value 

= Positive value, if pool classified value is greater than Class III value 

= Negative value, if pool classified value is lower than Class III value 
 

 

 

 

Positive Producer Price Differential 

Producer Pool Revenue Component Values (Class III) 

• Class I Handler Value 

• Butterfat Value 

• Class II Handler Value 

• Protein Value 

• Class III Handler Value 

• Other Solids Value 

• Class IV Handler Value 

PRODUCER PRICE 

DIFFERENTIAL 

(PPD) 
 

 

 

 

Negative Producer Price Differential 

Producer Pool Revenue Component Values (Class III) 

• Class I Handler Value 

• Butterfat Value 

• Class II Handler Value 

• Protein Value 

• Class III Handler Value 

• Other Solids Value 

• Class IV Handler Value 

PRODUCER PRICE 

DIFFERENTIAL 

(PPD) 
 

+PPD

Positive Producer Price Differential 

Producer 

Pool Revenue Payment Breakdown Component Values (Class III) 

+PPD 

When the value of the pool is greater than your Class III component 

value payments, the PPD is positive 
 

 

Negative Producer Price Differential 

Producer 

Pool Revenue Component Values (Class III) Payment Breakdown 

-PPD 

When the value of the pool is less than your Class III component 

value payments, a PPD is negative 
How is my payment calculated? 

Pounds of butterfat produced x butterfat price 

+ Pounds of true protein produced x protein price 

+ Pounds of other solids produced x other solids price 

+ (cwt of milk x PPD*) 

+/ - Somatic Cell Adjustment 

- Authorized Deductions 

= Producer Payment *Adjusted for location 
MCP Analysis – Appalachian and Southeast Orders 
Estimated Change in FO 5 Pool Value with MCP 

Additional $7.26 Million ($0.06 per cwt) from 2016 - 2017 

$600 

$500 

VI 

,:i 

C 

n, 

VI 

::I 

0 

.c 

I-

$400 

$300 

$200 
Estimated Change in FO 7 Pool Value with MCP 

Additional $7.11 Million ($0.06 per cwt) from 2016 - 2017 

$700 

~ 

C 

nl 

Ill 

:::s 

0 

.c 

.... 

$600 

$500 

$400 

$300 

$200 

$100 

$0 111 
FO 5 Multiple Component Pricing Impact Estimate Market Average Component Tests 

Difference per cwt 

Impact 

Value per cwt 

Producer Price Differential 

Butterfat Protein Other Solids SCC 

Jan-16 3.8076 3.1114 5.7326 226 $331,353.48 $0.07 

$295,506.71 $0.07 

$271,630.42 $0.05 

$267,919.53 $0.06 

$243,718.94 $0.05 

$133,598.52 $0.03 

$74,302.52 $0.02 

$72,088.84 $0.02 

$135,315.59 $0.03 

$324,211.44 $0.07 

$372,894.78 $0.09 

$534,255.86 $0.11 

$431,646.79 $0.09 

$382,982.95 $0.09 

$446,074.81 $0.09 

$377,712.84 $0.08 

$300,073.82 $0.06 

$280,183.11 $0.06 

$171,669.90 $0.04 

$201,522.77 $0.04 

$277,336.00 $0.06 

$361,471.66 $0.07 

$410,468.54 $0.09 

$561,364.88 $0.11 

$15,361,101.89 $3.12 

$10,759,147.81 $2.37 

$10,017,995.73 $2.02 

$11,074,432.66 $2.28 

$15,475,251.11 $3.16 

$12,431,135.58 $2.70 

$6,949,451.52 $1.59 

$3,468,029.68 $0.74 

$8,962,583.21 $2.06 

$13,680,771.70 $3.01 

$787,231.18 $0.18 

$6,414,799.93 $1.32 

$13,859,758.18 $2.87 

$8,168,520.43 $1.89 

$14,933,396.42 $2.97 

$11,462,412.86 $2.39 

$9,336,995.63 $1.92 

$8,763,613.49 $1.81 

$17,955,555.56 $3.82 

$14,055,083.18 $2.84 

$11,973,928.25 $2.53 

$8,023,834.74 $1.63 

$6,255,663.55 $1.31 

$13,214,430.55 $2.54 

Feb-16 3.8158 3.0904 5.7476 228 

Mar-16 3.7131 3.0216 5.7557 218 

Apr-16 3.6710 3.0140 5.7592 210 

May-16 3.6388 2.9937 5.7587 217 

Jun-16 3.5833 2.9500 5.7387 234 

Jul-16 3.5652 2.9324 5.7293 258 

Aug-16 3.5648 2.9582 5.7166 273 

Sep-16 3.6273 3.0150 5.7115 260 

Oct-16 3.7373 3.0984 5.7401 231 

Nov-16 3.8236 3.1529 5.7451 210 

Dec-16 3.9134 3.1774 5.7608 205 

Jan-17 3.8602 3.1368 5.7478 215 

Feb-17 3.8073 3.1003 5.7520 201 

Mar-17 3.7907 3.0983 5.7633 194 

Apr-17 3.7309 3.0507 5.7546 200 

May-17 3.6990 3.0366 5.7461 213 

Jun-17 3.6571 3.0125 5.7380 225 

Jul-17 3.6338 2.9899 5.7192 241 

Aug-17 3.6610 3.0234 5.7259 247 

Sep-17 3.7389 3.0662 5.7470 231 

Oct-17 3.7727 3.1014 5.7440 223 

Nov-17 3.8589 3.1531 5.7576 207 

Dec-17 3.8968 3.1578 5.7630 194 
FO 7 Multiple Component Pricing Impact Estimate Impact Producer Price 

Differential 

Bfat Protein Other Solids SCC Difference per cwt Value per cwt 

Jan-16 3.78 3.1527 5.7081 270 $283,181 $0.06 $17,267,346 $3.66 

Feb-16 3.76 3.1318 5.7109 270 $245,671 $0.06 $11,956,122 $2.80 

Mar-16 3.67 3.0843 5.7199 256 $330,388 $0.07 $11,707,435 $2.30 

Apr-16 3.63 3.0867 5.7383 244 $353,412 $0.07 $12,421,264 $2.52 

May-16 3.61 3.0505 5.7262 261 $233,154 $0.05 $16,215,984 $3.38 

Jun-16 3.59 2.9963 5.7074 288 $95,752 $0.02 $13,264,107 $2.90 

Jul-16 3.59 3.0009 5.6907 306 $63,489 $0.02 $7,940,075 $1.90 

Aug-16 3.61 3.0347 5.6820 316 $55,660 $0.01 $4,991,442 $1.19 

Sep-16 3.68 3.1119 5.6821 312 $128,911 $0.03 $10,283,234 $2.52 

Oct-16 3.75 3.1815 5.6938 281 $266,330 $0.06 $14,815,960 $3.48 

Nov-16 3.81 3.2176 5.7076 248 $304,501 $0.07 $2,313,004 $0.56 

Dec-16 3.90 3.2363 5.7267 241 $597,902 $0.13 $7,784,290 $1.67 

Jan-17 3.83 3.1652 5.7142 256 $476,097 $0.10 $15,139,045 $3.07 

Feb-17 3.76 3.1333 5.7246 228 $477,881 $0.11 $9,335,132 $2.13 

Mar-17 3.74 3.1295 5.7344 226 $535,986 $0.10 $15,742,277 $3.07 

Apr-17 3.68 3.1032 5.7196 230 $467,243 $0.09 $12,786,131 $2.55 

May-17 3.66 3.0990 5.7022 250 $384,076 $0.08 $10,197,419 $2.05 

Jun-17 3.67 3.0791 5.6885 266 $263,060 $0.06 $9,303,921 $2.06 

Jul-17 3.66 3.0650 5.6769 285 $159,441 $0.04 $17,148,521 $4.06 

Aug-17 3.68 3.1038 5.6740 293 $140,890 $0.03 $8,815,587 $2.06 

Sep-17 3.74 3.1589 5.6905 271 $205,811 $0.05 $15,225,701 $3.73 

Oct-17 3.76 3.1976 5.6977 268 $279,120 $0.07 $7,755,841 $1.83 

Nov-17 3.85 3.2319 5.7124 243 $344,763 $0.08 $5,315,580 $1.26 

Dec-17 3.87 3.2078 5.7292 235 $421,480 $0.09 $11,205,508 $2.48 
FO 5 Multiple Component Pricing Impact Estimate by Class 

Class II Value Class III Value Class IV Value SCC Impact Total Impact 

Difference per cwt Difference per cwt Difference per cwt Adjustment per cwt Difference per cwt 

Jan-16 $72,172.83 $0.01 $49,050.14 $0.01 $72,947.50 $0.01 $137,183.01 $0.03 

$127,539.33 $0.03 

$162,585.96 $0.03 

$173,239.76 $0.04 

$166,665.90 $0.03 

$134,798.17 $0.03 

$106,052.67 $0.02 

$85,335.55 $0.02 

$89,729.40 $0.02 

$125,740.56 $0.03 

$133,473.83 $0.03 

$179,547.22 $0.04 

$150,747.53 $0.03 

$156,441.07 $0.04 

$185,049.61 $0.04 

$199,722.98 $0.04 

$167,254.44 $0.03 

$179,787.28 $0.04 

$134,248.38 $0.03 

$119,556.36 $0.02 

$130,148.05 $0.03 

$154,580.69 $0.03 

$157,476.80 $0.03 

$228,911.07 $0.04 

$331,353.48 $0.07 

$295,506.71 $0.07 

$271,630.42 $0.05 

$267,919.53 $0.06 

$243,718.94 $0.05 

$133,598.52 $0.03 

$74,302.52 $0.02 

$72,088.84 $0.02 

$135,315.59 $0.03 

$324,211.44 $0.07 

$372,894.78 $0.09 

$534,255.86 $0.11 

$431,646.79 $0.09 

$382,982.95 $0.09 

$446,074.81 $0.09 

$377,712.84 $0.08 

$300,073.82 $0.06 

$280,183.11 $0.06 

$171,669.90 $0.04 

$201,522.77 $0.04 

$277,336.00 $0.06 

$361,471.66 $0.07 

$410,468.54 $0.09 

$561,364.88 $0.11 

Feb-16 $80,308.15 $0.02 $39,701.80 $0.01 $47,957.43 $0.01 

Mar-16 $54,253.40 $0.01 $17,749.11 $0.00 $37,041.95 $0.01 

Apr-16 $45,207.18 $0.01 $10,638.59 $0.00 $38,834.01 $0.01 

May-16 $35,392.56 $0.01 $3,886.04 $0.00 $37,774.43 $0.01 

Jun-16 $5,150.41 $0.00 -$12,609.39 $0.00 $6,259.34 $0.00 

Jul-16 -$8,299.23 $0.00 -$15,682.11 $0.00 -$7,768.82 $0.00 

Aug-16 -$2,273.76 $0.00 -$9,450.21 $0.00 -$1,522.73 $0.00 

Sep-16 $26,525.16 $0.01 $10,040.00 $0.00 $9,021.03 $0.00 

Oct-16 $92,385.38 $0.02 $48,996.39 $0.01 $57,089.11 $0.01 

Nov-16 $121,060.67 $0.03 $67,748.66 $0.02 $50,611.62 $0.01 

Dec-16 $140,060.90 $0.03 $86,304.89 $0.02 $128,342.86 $0.03 

Jan-17 $126,890.88 $0.03 $76,203.45 $0.02 $77,804.93 $0.02 

Feb-17 $108,429.91 $0.03 $56,739.14 $0.01 $61,372.83 $0.01 

Mar-17 $131,880.91 $0.03 $66,224.10 $0.01 $62,920.19 $0.01 

Apr-17 $76,335.42 $0.02 $30,915.01 $0.01 $70,739.42 $0.01 

May-17 $62,764.39 $0.01 $23,353.98 $0.00 $46,701.02 $0.01 

Jun-17 $47,452.62 $0.01 $17,117.50 $0.00 $35,825.70 $0.01 

Jul-17 $23,870.33 $0.01 $3,635.15 $0.00 $9,916.04 $0.00 

Aug-17 $50,093.97 $0.01 $16,251.63 $0.00 $15,620.81 $0.00 

Sep-17 $84,437.50 $0.02 $26,612.75 $0.01 $36,137.69 $0.01 

Oct-17 $105,438.69 $0.02 $54,004.95 $0.01 $47,447.33 $0.01 

Nov-17 $122,893.69 $0.03 $76,238.37 $0.02 $53,859.67 $0.01 

Dec-17 $112,036.48 $0.02 $88,124.38 $0.02 $132,292.95 $0.03 
FO 7 Multiple Component Pricing Impact Estimate by Class 

Class II Value Class III Value Class IV Value SCC Adjustment Total Est. Impact 

Difference per cwt Diffference per cwt Difference per cwt Total per cwt Difference per cwt 

Jan-16 $83,537 $0.02 $73,402 $0.02 $48,172 $0.01 $78,070 $0.02 $283,181 $0.06 

Feb-16 $60,296 $0.01 $90,186 $0.02 $25,852 $0.01 $69,338 $0.02 $245,671 $0.06 

Mar-16 $59,681 $0.01 $114,604 $0.02 $31,882 $0.01 $124,221 $0.02 $330,388 $0.07 

Apr-16 $62,479 $0.01 $115,278 $0.02 $35,621 $0.01 $140,035 $0.03 $353,412 $0.07 

May-16 $41,306 $0.01 $62,850 $0.01 $21,526 $0.00 $107,472 $0.02 $233,154 $0.05 

Jun-16 $11,632 $0.00 $7,159 $0.00 $5,571 $0.00 $71,390 $0.02 $95,752 $0.02 

Jul-16 $6,404 $0.00 $8,141 $0.00 $1,722 $0.00 $47,221 $0.01 $63,489 $0.02 

Aug-16 $17,806 $0.00 $10,970 $0.00 $2,164 $0.00 $24,720 $0.01 $55,660 $0.01 

Sep-16 $52,609 $0.01 $35,473 $0.01 $12,035 $0.00 $28,795 $0.01 $128,911 $0.03 

Oct-16 $105,981 $0.02 $52,861 $0.01 $47,785 $0.01 $59,702 $0.01 $266,330 $0.06 

Nov-16 $130,546 $0.03 $70,056 $0.02 $25,390 $0.01 $78,508 $0.02 $304,501 $0.07 

Dec-16 $163,097 $0.03 $231,171 $0.05 $73,229 $0.02 $130,406 $0.03 $597,902 $0.13 

Jan-17 $133,255 $0.03 $155,158 $0.03 $68,629 $0.01 $119,055 $0.02 $476,097 $0.10 

Feb-17 $84,085 $0.02 $209,988 $0.05 $42,202 $0.01 $141,605 $0.03 $477,881 $0.11 

Mar-17 $110,192 $0.02 $190,310 $0.04 $62,244 $0.01 $173,241 $0.03 $535,986 $0.10 

Apr-17 $69,330 $0.01 $146,887 $0.03 $68,442 $0.01 $182,583 $0.04 $467,243 $0.09 

May-17 $62,008 $0.01 $137,295 $0.03 $42,978 $0.01 $141,795 $0.03 $384,076 $0.08 

Jun-17 $49,226 $0.01 $92,765 $0.02 $17,003 $0.00 $104,067 $0.02 $263,060 $0.06 

Jul-17 $37,722 $0.01 $41,058 $0.01 $12,146 $0.00 $68,515 $0.02 $159,441 $0.04 

Aug-17 $52,919 $0.01 $32,172 $0.01 $9,805 $0.00 $45,994 $0.01 $140,890 $0.03 

Sep-17 $82,856 $0.02 $33,446 $0.01 $27,045 $0.01 $62,464 $0.02 $205,811 $0.05 

Oct-17 $107,484 $0.03 $46,198 $0.01 $48,979 $0.01 $76,460 $0.02 $279,120 $0.07 

Nov-17 $133,530 $0.03 $63,926 $0.02 $46,963 $0.01 $100,345 $0.02 $344,763 $0.08 

Dec-17 $117,740 $0.03 $107,852 $0.02 $69,436 $0.02 $126,451 $0.03 $421,480 $0.09 
FO 5 Estimated MCP Impact Scenarios – July 2017 

Component Tests Equal to FO 5 Market Averages 

Skim Pounds: 96.366 BF Pounds: 3.634 Total Pounds: 100 

Skim Value: $9.28 BF Value: $10.44 $19.72 

Protein Pounds: 2.990 OS Pounds: 5.719 BF Pounds: 3.634 SCC: 241 

Protein Value: $3.66 OS Value: $1.49 BF Value: $10.70 SCC Value: $0.0839 

PPD Value: $3.82 $19.76 

$0.04 

Component Tests Less Than FO 5 Market Averages 

Skim Pounds: 96.770 BF Pounds: 3.230 Total Pounds: 100 

Skim Value: $9.32 BF Value: $9.28 $18.60 

Protein Pounds: 2.790 OS Pounds: 5.719 BF Pounds: 3.230 SCC: 241 

Protein Value: $3.42 OS Value: $1.49 BF Value: $9.51 SCC Value: $0.0839 

PPD Value: $3.82 $18.32 

-$0.28 

Component Tests Greater Than FO 5 Market Averages 

Skim Pounds: 96.050 BF Pounds: 3.950 Total Pounds: 100 

Skim Value: $9.25 BF Value: $11.35 $20.60 

Protein Pounds: 3.190 OS Pounds: 5.719 BF Pounds: 3.950 SCC: 241 

Protein Value: $3.91 OS Value: $1.49 BF Value: $11.64 SCC Value: $0.0839 

PPD Value: $3.82 $20.93 

$0.33 

Component Tests for High Component Producers 

Skim Pounds: 95.040 BF Pounds: 4.960 Total Pounds: 100 

Skim Value: $9.15 BF Value: $14.25 $23.40 

Protein Pounds: 3.390 OS Pounds: 5.719 BF Pounds: 4.960 SCC: 241 

Protein Value: $4.15 OS Value: $1.49 BF Value: $14.61 SCC Value: $0.0839 

PPD Value: $3.82 $24.15 

$0.75 

MCP Value: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

Difference: 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

Note: SCC = 241 
FO 5 Estimated MCP Impact Scenarios – July 2017 

Component Tests Equal to FO 5 Market Averages 

Skim Pounds: 96.366 BF Pounds: 3.634 Total Pounds: 100 

Skim Value: $9.28 BF Value: $10.44 $19.72 

Protein Pounds: 2.990 OS Pounds: 5.719 BF Pounds: 3.634 SCC: 400 

Protein Value: $3.66 OS Value: $1.49 BF Value: $10.70 SCC Value: -$0.0385 

PPD Value: $3.82 $19.64 

-$0.09 

Component Tests Less Than FO 5 Market Averages 

Skim Pounds: 96.770 BF Pounds: 3.230 Total Pounds: 100 

Skim Value: $9.32 BF Value: $9.28 $18.60 

Protein Pounds: 2.790 OS Pounds: 5.719 BF Pounds: 3.230 SCC: 400 

Protein Value: $3.42 OS Value: $1.49 BF Value: $9.51 SCC Value: -$0.0385 

PPD Value: $3.82 $18.20 

-$0.40 

Component Tests Greater Than FO 5 Market Averages 

Skim Pounds: 96.050 BF Pounds: 3.950 Total Pounds: 100 

Skim Value: $9.25 BF Value: $11.35 $20.60 

Protein Pounds: 3.190 OS Pounds: 5.719 BF Pounds: 3.950 SCC: 400 

Protein Value: $3.91 OS Value: $1.49 BF Value: $11.64 SCC Value: -$0.0385 

PPD Value: $3.82 $20.81 

$0.21 

Component Tests for High Component Producers 

Skim Pounds: 95.040 BF Pounds: 4.960 Total Pounds: 100 

Skim Value: $9.15 BF Value: $14.25 $23.40 

Protein Pounds: 3.390 OS Pounds: 5.719 BF Pounds: 4.960 SCC: 400 

Protein Value: $4.15 OS Value: $1.49 BF Value: $14.61 SCC Value: -$0.0385 

PPD Value: $3.82 $24.03 

Difference: $0.63 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

Note: SCC = 400 
FO 7 Estimated MCP Impact Scenarios – July 2017 

Note: SCC = 285 

Component Tests Equal to FO 7 Market Averages 

Skim Pounds: 96.340 BF Pounds: 

Skim Value: $9.59 BF Value: 

Protein Pounds: 3.065 OS Pounds: 

Protein Value: $3.75 OS Value: 

PPD Value: $4.06 

3.660 Total Pounds: 100 

$10.50 

5.677 BF Pounds: 3.660 

$1.48 BF Value: $10.78 

FO 7 Uniform Value: 

MCP Value: 

Difference: 

$20.08 

SCC: 

SCC Value: 

$20.12 

$0.04 

285 

$0.0501 

Component Tests Less Than FO 7 Market Averages 

Skim Pounds: 96.770 BF Pounds: 

Skim Value: $9.63 BF Value: 

Protein Pounds: 2.865 OS Pounds: 

Protein Value: $3.51 OS Value: 

PPD Value: $4.06 

3.230 Total Pounds: 100 

$9.26 

5.677 BF Pounds: 3.230 

$1.48 BF Value: $9.51 

Difference: 

MCP Value: 

FO 7 Uniform Value: $18.89 

SCC: 

SCC Value: 

$18.61 

-$0.28 

285 

$0.0501 

Component Tests Greater Than FO 7 Market Averages 

Skim Pounds: 96.050 BF Pounds: 

Skim Value: $9.56 BF Value: 

Protein Pounds: 3.265 OS Pounds: 

Protein Value: $4.00 OS Value: 

PPD Value: $4.06 

3.950 Total Pounds: 100 

$11.33 

5.677 BF Pounds: 3.950 

$1.48 BF Value: $11.64 

FO 7 Uniform Value: 

MCP Value: 

Difference: 

$20.89 

SCC: 

SCC Value: 

$21.22 

$0.33 

285 

$0.0501 

Component Tests for High Component Producers 

Skim Pounds: 95.040 BF Pounds: 

Skim Value: $9.46 BF Value: 

Protein Pounds: 3.465 OS Pounds: 

Protein Value: $4.24 OS Value: 

PPD Value: $4.06 

4.960 Total Pounds: 100 

$14.23 

5.677 BF Pounds: 4.960 

$1.48 BF Value: $14.61 

Difference: 

FO 7 Uniform Value: 

MCP Value: 

$23.68 

SCC: 

SCC Value: 

$24.44 

$0.76 

285 

$0.0501 
FO 7 Estimated MCP Impact Scenarios – July 2017 

Note: SCC = 400 

Component Tests Equal to FO 7 Market Averages 

Skim Pounds: 96.340 BF Pounds: 

Skim Value: $9.59 BF Value: 

Protein Pounds: 3.065 OS Pounds: 

Protein Value: $3.75 OS Value: 

PPD Value: $4.06 

3.660 Total Pounds: 100 

$10.50 

5.677 BF Pounds: 3.660 

$1.48 BF Value: $10.78 

FO 7 Uniform Value: 

MCP Value: 

Difference: 

$20.08 

SCC: 

SCC Value: 

$20.03 

-$0.05 

400 

-$0.0385 

Component Tests Less Than FO 7 Market Averages 

Skim Pounds: 96.770 BF Pounds: 

Skim Value: $9.63 BF Value: 

Protein Pounds: 2.865 OS Pounds: 

Protein Value: $3.51 OS Value: 

PPD Value: $4.06 

3.230 Total Pounds: 100 

$9.26 

5.677 BF Pounds: 3.230 

$1.48 BF Value: $9.51 

MCP Value: 

FO 7 Uniform Value: 

Difference: 

$18.89 

SCC: 

SCC Value: 

$18.52 

-$0.37 

400 

-$0.0385 

Component Tests Greater Than FO 7 Market Averages 

Skim Pounds: 96.050 BF Pounds: 

Skim Value: $9.56 BF Value: 

Protein Pounds: 3.265 OS Pounds: 

Protein Value: $4.00 OS Value: 

PPD Value: $4.06 

3.950 Total Pounds: 100 

$11.33 

5.677 BF Pounds: 3.950 

$1.48 BF Value: $11.64 

FO 7 Uniform Value: 

MCP Value: 

Difference: 

$20.89 

SCC: 

SCC Value: 

$21.13 

$0.25 

400 

-$0.0385 

Component Tests for High Component Producers 

Skim Pounds: 95.040 BF Pounds: 

Skim Value: $9.46 BF Value: 

Protein Pounds: 3.465 OS Pounds: 

Protein Value: $4.24 OS Value: 

PPD Value: $4.06 

4.960 Total Pounds: 100 

$14.23 

5.677 BF Pounds: 4.960 

$1.48 BF Value: $14.61 

Difference: 

FO 7 Uniform Value: 

MCP Value: 

$23.68 

SCC: 

SCC Value: 

$24.35 

$0.67 

400 

-$0.0385 
FO 5 Estimated MCP Impact Scenarios – December 2017 

Component Tests Equal to FO 5 Market Averages 

Skim Pounds: 96.103 BF Pounds: 3.897 Total Pounds: 100 

Skim Value: $9.49 BF Value: $9.84 $19.33 

Protein Pounds: 3.158 OS Pounds: 5.763 BF Pounds: 3.897 SCC: 194 

Protein Value: $6.43 OS Value: $0.62 BF Value: $9.72 SCC Value: $0.1279 

PPD Value: $2.54 $19.44 

$0.11 

Component Tests Less Than FO 5 Market Averages 

Skim Pounds: 96.770 BF Pounds: 3.230 Total Pounds: 100 

Skim Value: $9.56 BF Value: $8.15 $17.72 

Protein Pounds: 2.958 OS Pounds: 5.763 BF Pounds: 3.230 SCC: 194 

Protein Value: $6.03 OS Value: $0.62 BF Value: $8.06 SCC Value: $0.1279 

PPD Value: $2.54 $17.37 

-$0.34 

Component Tests Greater Than FO 5 Market Averages 

Skim Pounds: 96.050 BF Pounds: 3.950 Total Pounds: 100 

Skim Value: $9.49 BF Value: $9.97 $19.46 

Protein Pounds: 3.358 OS Pounds: 5.763 BF Pounds: 3.950 SCC: 194 

Protein Value: $6.84 OS Value: $0.62 BF Value: $9.86 SCC Value: $0.1279 

PPD Value: $2.54 $19.98 

$0.52 

Component Tests for High Component Producers 

Skim Pounds: 95.040 BF Pounds: 4.960 Total Pounds: 100 

Skim Value: $9.39 BF Value: $12.52 $21.91 

Protein Pounds: 3.558 OS Pounds: 5.763 BF Pounds: 4.960 SCC: 194 

Protein Value: $7.25 OS Value: $0.62 BF Value: $12.38 SCC Value: $0.1279 

PPD Value: $2.54 $22.91 

Difference: $1.00 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

MCP Value: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

Note: SCC = 194 
FO 5 Estimated MCP Impact Scenarios – December 2017 

Component Tests Equal to FO 5 Market Averages 

Skim Pounds: 96.103 BF Pounds: 3.897 Total Pounds: 100 

Skim Value: $9.49 BF Value: $9.84 $19.33 

Protein Pounds: 3.158 OS Pounds: 5.763 BF Pounds: 3.897 SCC: 370 

Protein Value: $6.43 OS Value: $0.62 BF Value: $9.72 SCC Value: -$0.0164 

PPD Value: $2.54 $19.30 

-$0.03 

Component Tests Less Than FO 5 Market Averages 

Skim Pounds: 96.770 BF Pounds: 3.230 Total Pounds: 100 

Skim Value: $9.56 BF Value: $8.15 $17.72 

Protein Pounds: 2.958 OS Pounds: 5.763 BF Pounds: 3.230 SCC: 370 

Protein Value: $6.03 OS Value: $0.62 BF Value: $8.06 SCC Value: -$0.0164 

PPD Value: $2.54 $17.23 

-$0.49 

Component Tests Greater Than FO 5 Market Averages 

Skim Pounds: 96.050 BF Pounds: 3.950 Total Pounds: 100 

Skim Value: $9.49 BF Value: $9.97 $19.46 

Protein Pounds: 3.358 OS Pounds: 5.763 BF Pounds: 3.950 SCC: 370 

Protein Value: $6.84 OS Value: $0.62 BF Value: $9.86 SCC Value: -$0.0164 

PPD Value: $2.54 $19.84 

$0.38 

Component Tests for High Component Producers 

Skim Pounds: 95.040 BF Pounds: 4.960 Total Pounds: 100 

Skim Value: $9.39 BF Value: $12.52 $21.91 

Protein Pounds: 3.558 OS Pounds: 5.763 BF Pounds: 4.960 SCC: 370 

Protein Value: $7.25 OS Value: $0.62 BF Value: $12.38 SCC Value: -$0.0164 

PPD Value: $2.54 $22.77 

Difference: $0.85 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

FO 5 Uniform Value: 

MCP Value: 

Difference: 

FO 5 Uniform Value: 

MCP Value: 

Note: SCC = 370 
Estimated State Average Component Levels 

FO 5 Producer Milk - 2017 

State Average Protein Average Other Solids Average SCC 

Georgia 3.12 5.74 237 

Indiana 3.07 5.75 188 

Kentucky 3.12 5.71 256 

North Carolina 3.06 5.74 236 

South Carolina 3.15 5.74 251 

Tennessee 3.05 5.74 273 

Virginia 3.05 5.76 207 

West Virginia 3.12 5.72 182 

Other 3.11 5.75 192 

FO 5 Market Average 3.08 5.75 216 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated State Average Component Levels 

FO 7 Producer Milk - 2017 

Bfat Protein Other Solids SCC Share of Producer Milk 

Alabama 3.85 3.12 5.68 382 26% 

Florida 3.61 3.07 5.72 199 94% 

Georgia 3.65 3.07 5.72 244 83% 

Indiana 3.65 3.08 5.75 201 76% 

Kansas 3.77 3.20 5.77 218 81% 

Kentucky 3.65 3.06 5.73 267 67% 

Louisiana 3.77 3.17 5.65 422 45% 

Michigan 3.78 3.19 5.72 163 26% 

Mississippi 3.90 3.22 5.63 388 70% 

Missouri 3.87 3.19 5.66 326 96% 

New Mexico 3.80 3.32 5.72 259 34% 

Ohio 4.47 3.35 5.68 184 32% 

Pennsylvania 3.65 2.94 5.80 165 33% 

South Carolina 4.11 3.31 5.69 353 87% 

Tennessee 3.75 3.10 5.73 281 29% 

Texas 3.83 3.24 5.70 329 65% 
FO 5 Statistical Reports: 

http://www.malouisville.com/linkeddocs/StatReports/StatReports.html 

FO 7 Statistical Reports: 

http://www.fmmatlanta.com/Statistical_Report.htm 

AMS Dairy Programs – Industry Requests 

https://www.ams.usda.gov/rules-regulations/moa/dairy/ca/industryrequests 
Market Information - Appalachian and Southeast Orders 
FO 5 and 7 Pool Plants 

Hiland DairyFayetteville

Hiland DairyFort Smith

Crescent

Dairy

Borden DairyCharleston

Hunter Farms

Dairy FreshHigh Point

Dairy FreshWinston-Salem

Land-O-Sun

Milkco

DFA-Cabool Memory

Lane

Hiland DairySpringfield

Heritage 

Farms

Purity Dairies

Country Delite

Shamrock

Foods

Valley Milk

Products

Homestead

Creamery

Westover

Dairy

Marva Maid

MayfieldAthens

Broadacre Dairies

Prairie FarmsKosciusko

MayfieldBraselton

Publix

Centennial

 Farms

TurnerFulton

TurnerMemphis

Barber

United Dairy

Dean Foods

Prairie FarmsHolland

Prairie FarmsSomerset

Winchester

Farms

Borden DairyLondon

Hiland DairyLittle Rock

Borden DairyHattiesburg

Borden DairyCowarts

SMI UF

Kleinpeter FarmsDean Foods

Borden DairyLafayette

Hiland DairyFayetteville 

Hiland DairyFort Smith 

Crescent 

Dairy 

Borden DairyCharleston 

Hunter Farms 

Dairy FreshHigh Point 

Dairy FreshWinston-Salem 

Land-O-Sun 

Milkco 

DFA-Cabool Memory

Lane 

Hiland DairySpringfield 

Heritage 

Farms 

Purity Dairies 

Country Delite 

Shamrock 

Foods 

Valley Milk

Products 

Homestead 

Creamery 

Westover 

Dairy 

Marva Maid 

MayfieldAthens 

Broadacre Dairies 

Prairie FarmsKosciusko 

MayfieldBraselton 

Publix 

Centennial

 Farms 

TurnerFulton 

TurnerMemphis 

Barber 

United Dairy

Dean Foods 

Prairie FarmsHolland 

Prairie FarmsSomerset 

Winchester 

Farms 

Borden DairyLondon 

Hiland DairyLittle Rock 

Borden DairyHattiesburg 

Borden DairyCowarts 

SMI UF 

Kleinpeter FarmsDean Foods

Borden DairyLafayette 
 

 

19 Pool Distributing Plants 

1 Pool Supply Plant 

Market Pool Plants Class IV 

Class III 0.6% Class IV 3.2% 10.5%

Class I 

80.1% 

Class II 

16.1% 

Class III 

4.8% 

Class I 

69.0% 

Class II 

15.7% 
 

Pool Distributing Plants: 20 

Pool Supply Plants: 1-2 

Market Pool Plants 

Class I 

80.1% 

Class II 

10.8% 

Class III 3.6% Class IV 5.4% 

Class I 

69.1% 

Class II 

14.3% 

Class III 

8.6% 

Class IV 

7.9% 
 

 

 

Diversions by Plant

Location 

FO 5 Total Producer Milk 30.6% to Non-Pool Plants 

located in FO 5 & 7 

Northeast 

31.9% 

Appalachian

25.9% Southeast 

4.7% 

Mideast 

21.9% 

Southwest 

7.9% 

Other 

7.7% 

Received at 

Pool Plants 

85.1% 

Diversions 

14.9% 
 

FO 7 Total Producer Milk Diversions by Plant Location

84.1 % to Non-Pool Plants located in 

FO’s 7 & 126 

Received at 

Pool Plants, 

83.2 

Diversions, 

16.8 

Florida 

4.2 

Southeast 

58.5 

Mideast 

5.0 

Southwest 

25.7 

Other 

3.50 

Appalachian

3.2 
Diversion Limits & Performance Requirements 

FO No. FO Name Diversion 

Limits 

Delivery Day 

Requirements 

Class I Utilization2017 Class I Pounds- 2017 

(Billion Lbs.) 

5 Appalachian 25-35% 1/month 69.0% 4.0 

6 Florida 10-20% 10/month 83.3% 2.2 

7 Southeast 25-35% 1/month 69.1% 3.8 

1 Northeast 80-90% 1-(until association lost) 32.1% 8.8 

30 Upper Midwest 90% 1-(until association lost) 10.0% 3.2 

32 Central 75-80% 1-(until association lost) 30.5% 4.8 

33 Mideast 50-60% 2-(until association lost) 31.8% 6.4 

124 Pacific Northwest 80% 3/month 24.7% 1.9 

126 Southwest 50% 1-(at least 40,000 lbs) 32.2% 4.2 

131 Arizona 50% 1/month 25.4% 1.3 
Federal Order 5 Diversions 

2010-2018 

40% 

35% 35% 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

Diversion Limit % 

Actual Diversion % 

25% 
 

 

Federal Order 7 Diversions 

2010-2018 

0% 

5% 

10% 

15% 

20% 

25% 

30% 

35% 

40% 

Diversion Limit % 

Actual Diversion % 

25% 

35% 

58 months @ 25%--Actual avg was 20.1% 

41 months @ 35%--Actual avg was 26.1% 
 

 

 

 

FO 5 Daily Average Production and Pool 

Distributing Plant Demand 2015-2017 

0 

2 

4 

6 

8 

10 

12 

14 

16 

Million Lbs 

In Area Production Pool Distributing Plants Demand 

Monthly Average Daily Deficit = 3.8 Million Pounds per day 

2.6 Mil lbs Deficit 

4.8 Mil lbs Deficit 

2 .2 Mil lbs. per day 

Increase in volume 

of deficit 

Swing from April

To September 15.6% 

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 
 

 

FO 7 Daily Average Production and Pool 

Distributing Plant Demand 2015-2017 

0 

2 

4 

6 

8 

10 

12 

14 

16 

Million Lbs 

In Area Production Pool Distributing Plants Demand 

Monthly Average Daily Deficit = 3.0 Million Pounds per day 

1.0 Mil lbs Deficit 

4.6 Mil lbs Deficit 

3.6 Mil lbs. per day 

Increase in volume 

of deficit -35.6 % swing 

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 
Daily Producer Milk Receipts FO 5 Pool Distributing Plants – March 2018 

8 

9 

10 

11 

12 

13 

14 

15 

Million Lbs 

Average = 13.0 Million Pounds per day 

14.2 

11.6 

T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S 
Daily Producer Milk Receipts FO 7 Pool Distributing Plants – March 2018 

10.0 

12.4 

8 

9 

10 

11 

12 

13 

14 

Million Lbs 

Average = 11.3 Million Pounds per day 

T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S 
FO 5 Transportation Credit Balancing Fund 

2009-2018

 $-

$2

 $4

 $6

 $8

 $10

 $12 

Million 

Dollars 

Claimed 

Dollars Paid 

Assessments 

100% 

88% 

62% 

100% 77% 66%

Based on a March-February period 

For example, 2013/14 is March 2013 – February 2014 

86% 

100% 

100% 

100% 

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 
FO 7 Transportation Credit Balancing Fund 

2009-2018 

$-

$5

 $10

 $15

 $20

 $25

 $30 

Million 

Dollars Claimed 

Dollars Paid 

Assessments 

60% 

83% 

71% 58%

75 

% 58% 

Based on a March-February period 

For example, 2013/14 is March 2013 – February 2014 

70 

% 92% 73%

81% 

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 
Capper-Volstead Cooperatives 
 

 

 

Capper-Volstead Act 

• Act approved in 1922 

• Grants certain agricultural cooperatives limited immunity 

from antitrust laws. 

• Allows associations (cooperatives) of producers of agricultural 

products to act together in the processing, preparing for 

market, handling and marketing in interstate and foreign 

commerce their products. 
 

 

Capper-Volstead Act 

Requirements: 

• Members must produce the agricultural product 

• One vote per member 

• Dividends on stock or membership capital cannot 

exceed 8 percent 

• Nonmember business cannot be more than 

member business 

• The association must operate for the mutual 

benefit of its members 
 

 

 

 

 

Capper-Volstead Act 

Restrictions: 

• The cooperative may not monopolize or restrain trade in 

interstate or foreign commerce to such an extent that the 

price of any agricultural product is unduly enhanced. 

Oversight: 

• By the United States Department of Agriculture 

• Not Federal Trade Commission or Department of Justice 
 

 

 

 

 

 

 

 

FMMO “Qualified Cooperative” 

 Special FMMO Designation 

 Approval granted by USDA-AMS-Dairy Program 

• Requirements: 

• Qualified under the Capper – Volstead Act 

• Organization and activities are under member control 

• Has full authority in sale of member milk 

• Engaged in the collective sales of milk and dairy products for its 

members 

• Exemption from marketing services payments under an order shall be 

determined by the provisions of the order 

 Qualified cooperatives must file an annual report with USDA 
 

 

 

FMMO “Qualified Cooperative” 

FMMO Benefits for Qualified Cooperatives: 

• Ability to represent members in order referendums 

(bloc vote) 

• Authorization to collect payments from handlers for 

members’ milk 

• Ability to render marketing services to producers 

(testing, market information) 
Questions?