NAJ National All-Jersey Inc. 

June 14, 2023 

VIA E-MAIL: FMM0hearing@usda.gov 

Deputy Administrator 

USDA/ AMS/Dairy Programs 

STOP-02250, Room 2530 

1400 Independence A venue, SW 

Washington, DC 20250-0225 

Dear Deputy Administrator: 

Thank you for the opportunity to submit additional proposals for consideration in a 

hearing to amend pricing provisions in all Federal Milk Marketing Orders (FMMO). I am 

submitting three proposals on behalf of National All-Jersey Inc. (NAJ). NAJ advocates the 

adoption of all three proposals, but each could be adopted individually. 

NAJ was formed in 1957 by the American Jersey Cattle Association to promote equity in 

milk pricing. The nutrition, and therefore the value, of milk resides in its components: butterfat, 

protein, and other solids (lactose and minerals). Equitable milk pricing seeks to compensate 

producers for milk components in accordance with their use and value in consumer products. 

For over 50 years, NAJ has advocated for not just Jersey producers, but all producers 

with above-average component milk. A national organization, today NAJ has 975 members who 

support equity in milk pricing and dairy policy. While a majority of these members are Jersey 

producers, approximately 25% ofNAJ members own other breeds of dairy cows in addition to 

Jerseys. 

NAJ carries out its mission through market development, milk price regulation, policy 

issues, research, industry relations and information and education. NAJ is a long-time associate 

member of both the National Milk Producers Federation (NMPF) and the International Dairy 

Foods Association (IDFA). 

USlersey 6486 East Main Street 

Reynoldsburg Ohio 43068-2362 

(614) 861-3636 phone 

(614) 861-8040 fax 

http: //naj. usjersey. com 
Deputy Administrator 

June 14, 2023 

Page2 

While NAJ has interest in all aspects of modernizing the Federal Milk Marketing Orders, 

the organization's priorities are as follows: (1) Updating the milk component factors for protein, 

other solids, and nonfat solids in the Class III and IV skim milk price formulas and increasing the 

frequency of such updates to annually with an appropriate lag to address time needed for risk 

management tools. (2) Establishing Class II, III, and IV payment requirements in FMMOs 5, 6, 

7 and 131 based on multiple component pricing. (3) Establishing Class I payment requirements 

based on multiple component pricing instead of skim and butterfat in all FMMOs. 

NAJ requested data from USDA/ AMS/Dairy Program consisting of: 

• Total monthly pounds of skim milk, protein, other solids, and nonfat solids, 

• Pooled in each of Classes I, II, III, and IV, 

• In each of the 11 federal orders, 

• For the years 2019 through 2022. 

NAJ's analysis of this data showed conclusively that producer skim milk components have 

increased well above the current skim component factors of 3 .1 for protein, 5. 9 for other solids, 

and 9.0 for nonfat used in the Class III and Class IV skim milk price formulas. NAJ agrees with 

NMPF's assertions that: 

• The skim component factors used in price formulas should be reflective of actual 

skim components in producer milk. 

• The current misalignment between skim components used in price formulas and 

actual skim components in producer milk causes Class I prices to be lower 

relative to manufacturing milk prices in all federal orders which increases the 

likelihood that manufacturing milk will be depooled. 

• The current misalignment between skim components used in price formulas and 

actual skim components in producer milk causes Classes II, III, and IV to be 

undervalued in the four non-MCP orders. 

However, NAJ's analysis also revealed that while overall skim component content has increased, 

there are significant differences in the skim components between classes and orders. The 

continued use of single, national skim component factors across all orders, even if updated 
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June 14, 2023 

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regularly, will result in class prices, primarily Class I, being misaligned with actual skim values. 

As a result, skim milk will continue to be overvalued and undervalued in many orders. 

Therefore, NAJ offers three proposals for consideration. 

A. NAJ Proposal 1: Annually Update The Milk Component Factors For Protein, Other 

Solids, And Nonfat Solids In The Class III and Class IV Skim Milk Price Formulas 

NAJ requests amendments to the milk component factors in the skim milk price formulas 

for Class III and Class IV such that they are updated annually in order to more accurately reflect 

the component content in the skim portion of producer milk. 

NAJ's proposed amendment is set out here for consideration and is similar but not 

identical to NMPF' s proposal. Both proposals seek to update milk component factors in the 

skim milk price formulas for Class III and Class IV by calculating the weighted average skim 

factors for all orders. This will also impact Class II. The proposals differ in that NMPF would 

update the factors every three years with a one-year lag and NAJ would update the factors 

annually with a one-year lag. 

1. Proposed Order Language 

§ 1000.50 Class prices, component prices, and advanced pricing factors. 

***** 

(f) Class II nonfat solids price. The Class II nonfat solids price per pound routed 

to the nearest one-hundredth cent, shall be the Class II skim milk price divided by 

9-the applicable nonfat solids component factor described in 1000.51. 

(i) Class III skim milk price. The Class III skim milk price per hundredweight, 

rounded to the nearest cent, shall be the protein price per pound times H the 

applicable protein component factor described in § 1000.51 plus the other solids 

price per pound times ~ the applicable other solids component factor 

described in § 1000.51. 

* * * * * 
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June 14, 2023 

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(k) Class IV skim milk price. The Class IV skim milk price per hundredweight, 

rounded to the nearest cent, shall be the nonfat solids price per pound times--9 the 

applicable nonfat solids component factor described in§ 1000.51. 

* * * * * 

( q) Advanced pricing factors. 

(1) ... 

(i) ... 

(ii) Multiply the protein price computed in paragraph (q)(l)(i) of this 

section by tt the applicable protein component factor described in§ 1000.51; 

(iii) Multiply the other solids price per pound computed in paragraph 

(q)(l)(i) of this section by ~ the applicable other solids component factor 

described in§ 1000.51; and 

(iv) ... 

(2) ... 

(i) ... 

(ii) Multiply the nonfat solids price computed in paragraph (q)(2)(i) 

of this section by 9- the applicable nonfat solids component factor described in 

§ 1000.51. 

* * * * * 

§ 1000.51 [Reserved] Milk Component Factors 

(1) Effective with milk marketed in January following the effective date 

of this section §1000.51, the component factors for protein, other solids and 

nonfat solids in this section 1000.5l(l)(a)-(c) shall replace component factors 

for protein, other solids and nonfat solids for one calendar year, January 

through December, and thereafter,§ 1000.51(2) shall establish the component 

factors for protein, other solids and nonfat solids applicable to §1000.50 

annually thereafter as prescribed therein: 

(a) Protein 3.39; 

(b) Other solids 6.02; and 

(c) Nonfat solids 9.41. 
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June 14, 2023 

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(2) The component factors in §1000.5l(l)(a)-(c) shall be updated 

annually to reflect the weighted average component tests of producer milk in 

all Orders for the immediately preceding calendar year, January through 

December. 

(3) The component factors for the immediately preceding calendar year 

as calculated in §1000.51(2) shall be calculated on or before the last business 

day of February and shall be utilized in §1000.50 for pricing effective in 

January of the subsequent year. 

2. Justification for NAJ Proposal 1 

National All-Jersey agrees with and supports NMPF's effort to update the milk 

component factors for protein, other solids, and nonfat solids in the Class III and Class IV skim 

milk price formulas. National All-Jersey agrees with the analysis presented by NMPF in favor of 

the proposed change. 

When the component pricing factors in § 1000.50 do not keep pace with actual 

components reflected in the marketplace, there is a misalignment between the value of milk to 

producers that is supplied to manufacturing in Multiple Component Pricing (MCP) orders 

(because the handler pays based on actual components in the milk they receive) and milk 

supplied to fluid milk plants where handlers pay based on the outdated lower component pricing 

factors in 1000.50. The misalignment between current actual skim milk components used in 

valuing manufacturing milk and outdated component factors used in valuing Class I milk (and 

manufacturing milk in the non-MCP orders), creates disorderly marketing conditions as 

discussed hereinbelow. 

Attachment A, Skim Solids All Orders, All Classes, shows the national average 

skim component content from a USDA FMMO data request for the period of 2019 to 2022, as 

well as the most recent three-year average included in NMPF's proposal. A summary chart 

follows, which also lists the current component pricing factors utilized in 1000.50: 

Data Source Protein Other Solids Nonfat Solids 

§ 1000.50 3.1% 5.90% 9.00% 
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June 14, 2023 

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2019 3.29% 6.00% 9.29% 

2020 3.30% 6.01% 9.31% 

2021 3.34% 6.01% 9.35% 

2022 3.39% 6.02% 9.41% 

NMPF 3.35% 6.01% 9.36% 

The data shows that actual components have increased substantially above the current 

component pricing factors in § 1000.50. The difference between the component pricing factors in 

§1000.50 and 2022 is material and, importantly, the difference between NMPF's proposal and 

NAJ's Proposal I is material as well. 

The difference between NMPF's proposed component pricing factors using a threeyear average that is updated every three years versus an annual update is material. If already 

implemented, the NMPF proposal would update the skim milk factors to the most current threeyear average (2020 to 2022) beginning in 2024, and those factors would continue to be used until 

2027. NAJ's proposed annual updates would utilize 2022's actual skim components in 2024 

which exceed the NMPF's proposed three-year average. While 2024's advance component prices 

can't be known, based on 2022's prices of $2.7098 for protein, $0.4320 for other solids, and 

$1.5135 for nonfat solids, the Class III advance skim price would be $0.11/cwt. higher using 

annual updates versus a three-year average, and the Class IV advance skim price would be 

$0.08/cwt. higher. Accordingly, the Class I skim price would be $0.095/cwt. higher, which 

equates to $3 8 million of Class I revenue when applied across 40 million pounds of pooled Class 

I skim. 

Skim protein content increased 0.1 % from 2019 to 2022. If protein's increasing trend 

continues, skim protein content will be approximately 3.44% by 2024. Based on NMPF's 

proposal, milk marketed in 2026 would utilize skim pricing factors of 3.3% protein, 6.0% other 

solids, and 9.3% nonfat solids as the last year that NMPF's proposed three-year average (2020 to 

2022) would be in effect. Using NAJ's proposed annual update, the skim pricing factors in 2026 
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June 14, 2023 

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would be 3.44% protein, 6.02% other solids, and 9.46% nonfat solids based on projected 2024 

components. The differences of 0.09% protein, 0.01 % other solids, and 0.10% nonfat solids will 

have a material impact on Class III and IV skim prices. Furthermore, marketing milk in 2026 

using skim pricing factors based on 2024 producer components instead of 2020 to 2022 

components will keep skim milk prices better aligned with manufacturing milk given that 

manufacturing milk value will be based on actual component content. 

Money moves milk. Given that producers have become more adept at producing 

higher component milk as evidenced by the above data, the fact that they can generate more 

value for their milk by supplying manufacturing in a MCP market versus a fluid milk plant or a 

manufacturing plant in a non-MCP market, means that the outdated components in§ 1000.50 

incentivize producers to incur transportation costs and engage in milk movement that will 

maximize the value of their milk despite the needs of plants that are closer. It is the mark of 

disorderly marketing to have pricing that encourages the unnecessary movement of milk longer 

distances, injects unnecessary transportation costs into the system, and makes it more difficult 

for handlers, especially fluid milk handlers, to attract a milk supply. Indeed, this is at the heart of 

the uniform pricing requirement in the foundational legislation authorizing FMMOs. 

3. §900.22 Proposal Submission Requirements for NAJ Proposal 1 

( a) The proposal would update the skim milk component pricing factors in § 1000.50 

annually with 12-month lag. NAJ agrees with NMPF's explanation here. Specifically, the 

proposal is intended to address negative PPDs, depooling, and uneconomic milk movement that 

is undertaken to move higher component milk to other markets where producers are 

compensated based on actual components. 

(b) The proposal would bring the relationship between manufacturing values and 

Class I values into closer alignment such that incentives to depool, the likelihood of negative 

PPDs and incentives to incur transportation costs to maximize producer revenue would be 

reduced. 

(c) The FMMO milk component factors currently found in §1000.50 are 3.1 for 

protein, 5.9 for other solids and 9.0 for nonfat solids. These factors have been in place since 
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June 14, 2023 

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FMMO reform and do not reflect the composition of milk currently. The proposal would update 

these factors to the factors identified based on the weighted average in all FMMOs in 2022 and 

then would be updated annually using the immediately preceding year. 

( d) The proposal is expected to make it less difficult for fluid milk plants to attract 

available milk that has higher component levels. The proposal is expected to reduce the 

incentive for manufactured milk to depool and reduce the incidence of negative PPDs by 

enhancing pool values and realigning the relationship between fluid milk and manufacturing 

milk values. The proposal is expected to increase the cost to processors and potentially to 

consumers as well. Initial impact will be $0.52/cwt. for Class I for all orders, $0.59/cwt. for 

Class III in the non-MCP orders, and $0.46/cwt. for Class IV in the non-MCP orders. By 

building in a 10-month lag between announcing the updated factors and implementing them, this 

will mitigate the impact on risk management strategies. 

(e) Small business producers would be expected to benefit from this proposal as it is 

expected to bring about more orderly marketing conditions and generate additional revenue for 

the FMMO pools, decrease the likelihood of negatives PPDs and depooling. In particular, 

producers serving the Class I market would be more likely to share in the value of manufacturing 

values to the extent depooling is reduced. Class I handlers and handlers involved with 

manufacturing in non-MCP orders would face higher costs, however, those higher costs would 

be expected to restore incentives for producers to supply their locations. 

(f) In general, the proposal would increase milk price costs to fluid milk handlers and 

manufacturers in non-MCP orders. Those same handlers should experience a benefit in that 

producers will have greater incentives to supply those same handlers. To the extent this proposal 

will reduce the likelihood of negative PPDs and depooling, industry should experience a less 

logistics costs associated with the uneconomic movement of milk. There should be a minimal 

impact on the Dairy Programs other than a one-time update using data that is readily available to 

the Market Administrators. 

(g) A pre-hearing information session would be helpful to explain the proposal, 

especially as it relates to the timing of the updates. 
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June 14, 2023 

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B. Proposal 2: Classes II, III, and IV in all orders to be valued on the actual pounds of 

protein, other solids, and nonfat solids pooled, including adjustments for Somatic 

Cell Count. 

NMPF's proposal correctly explains that some of the current marketing and price 

dysfunction in the federally regulated milk order system is related to multiple component pricing 

(MCP) for most milk, and New Deal-era skim/butterfat pricing for non-MCP markets. NMPF 

observes: 

• almost 90% ofFMMO milk production use MCP. 

• In the seven Federal Orders with MCP, increased protein and other solids 

component levels have led to skim milk prices increasing relative to the other 

four Federal Orders without MCP. 

• manufacturing class prices undervalue producer milk in the non-MCP Federal 

Orders. 

• this has reduced the revenue producers receive for all milk not paid for on a MCP 

basis. 

• this also increases the cost of supplemental milk for the non-MCP, deficit fluid 

milk markets and reduces incentives to maintain or expand local milk 

production. 

The NMPF proposal to update component pricing factors in§ 1000.50 and NAJ's 

Proposal 1, while certainly an improvement that is important to mitigating the current pricing 

disfunction and resultant disorderly marketing conditions, would indirectly and incompletely 

address the problems of continuing a non-MCP system for a small portion of national milk 

production. In order to improve the disequilibrium associated with MCP and non-MCP pricing 

further than NAJ Proposal 1 and NMPF's component pricing update proposal, it is also 

important that the Secretary establish MCP pricing for Classes II, III, and IV in the orders that 

remain non-MCP orders and that is NAJ's Proposal 2. 
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June 14, 2023 

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1. Proposed Language for NAJ Proposal 2 

The proposal language for Proposal 2 is extensive so NAJ is including the proposal 

language for one of the four non-MCP orders as an example as an exhibit. See Attachment B, 

Sample MCP language for Classes II, III, and IV. 

2. Justification for NAJ Proposal 2 

NAJ proposes to amend the four remaining FMMOs that utilize skim and fat pricing 

instead of MCP so that they utilize MCP for Classes II, III, and IV. Those four orders are Orders 

5, 6, 7 and 131. 

The proposal would: ( 1) reduce wasteful transportation, handling and transaction 

costs associated with supplying raw milk to non-MCP orders that rely on milk from MCP orders, 

(2) provide MCP revenue benefits to producers, (3) restore uniform classified pricing for milk 

used to produce Class II, III and IV products, and ( 4) improve production market signals to dairy 

farmers. 

The existence of inconsistent programs for payment to producers in common 

procurement areas can result in disorderly marketing. Producers, cooperatives and handlers are 

presumed to respond rationally to economic signals created by the marketplace or by regulation 

in order to maximize revenue. For instance, in the decision adopting MCP for five Midwest 

markets, the Secretary explained how differing plans for payment to producers in overlapping 

milksheds creates disorderly marketing: 

Certainly, including the Nebraska-Western Iowa and Eastern South Dakota orders in this 

decision will contribute to orderly marketing. The data supplied by the market 

administrators' offices describing the milksheds of the various orders shows a 

considerable overlap of milksheds. For example, many South Dakota counties have milk 

pooled on three of the five orders during the same month. In the absence of uniform 

pricing provisions between the five orders, disorderly marketing could occur, particularly 

when orders have overlapping milksheds, if one order were pricing milk on a skim and 

butterfat basis while another order was pricing milk on the basis of its components. If a 

producer's milk tests high for nonfat components but is pooled under an order that prices 

milk on a skim-butterfat basis, the producer would attempt to maximize returns by 

changing the market under which his milk is pooled to benefit from his high component 

levels. The opposite situation would occur if the milk of a producer testing below average 
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June 14, 2023 

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for nonfat components is pooled under an order with MCP provisions. Such a producer 

would maximize returns by changing the order under which his milk is pooled to one 

with skim butterfat pricing. This shuffling of producers in the same geographic area 

because of nonuniform pricing provisions would not constitute orderly marketing. 

Milk in the Chicago Regional and Other Marketing Area, 60 Fed. Reg. 41837(August 14, 1985). 

Such marketing disorder has been observed in the southeast region, with adverse impact 

not only for milk used in manufacturing classes, but also for fluid use. Marketing inefficiency in 

supplying milk for fluid use in the southeast markets creates a unique imperative for adoption of 

uniform MCP rules in the southeast. The southeast region relies on milk supplies from producers 

who have access to MCP markets. Attachment C, Sources of Milk for FMMOs 5, 6, and 7. 

Milk originating in MCP markets would rationally be reluctant to supply fluid milk needs in the 

southeast if that meant giving up greater revenue from MCP in the market of origin. A high 

component producer within or near the southeast market would rationally seek an MCP market 

buyer, rather than serve southeast fluid needs, to enhance farm revenue from the payment for 

protein. By such rational decisions, less out-of-area milk will be made available to serve fluid 

needs in the southeast unless the originating milk is below average in protein content or the 

buying market compensates the supplier for giving up MCP revenue. Milk marketing and 

movement in the southeast is being directed by the unequal regulated pricing systems in adjacent 

Federal Orders rather than serving market needs and promoting marketing efficiencies. 

Some costly marketing inefficiencies due to adjoining MCP and skim-butterfat markets 

are: 

• There are incentives for milk assembly routes to be organized to collect lower protein 

milk for shipment to non-MCP markets when closer supplies, or more efficiently-assembled 

supplies, would be available but for the discouraging skim-butterfat price available for non-MCP 

market sales. Attachment D, Map of Texas and Louisiana Milk Movement. 

• A graphic illustration of the result of these marketing practices, as measured by protein 

content of producer milk, is shown in Attachment E , East Texas Milk Pooled on FO 126 vs. FO 

7, for milk from East Texas (as defined by the Order 126 Market Administrator) pooled in 

Orders 126 and 7. The higher protein milk in East Texas is retained to serve markets in Order 
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June 14, 2023 

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126 to realize its protein value. Meanwhile, Attachment D, Map of Texas and Louisiana Milk 

Movement, shows milk from west Texas regularly supplying Order 7. IfMCP existed in Order 

7, additional East Texas milk would have incentive to serve Order 7 markets thereby eliminating 

the need to move as much milk from west Texas and the associated greater hauling costs. 

• When procurement of milk with average or above average protein content from farms in 

MCP markets is necessary to serve a non-MCP market, the cooperative typically compensates 

producers the difference between the regulated MCP price they would receive in their home 

market, and the skim-butterfat price for which the milk will be credited in the non-MCP market, 

thereby reducing funds available cooperative members without the regulatory assurance of 

recovery of that amount. 

• In order to retain supplies of high protein producer milk from farms within the nonMCP markets that have access to MCP-market buyers, it is similarly necessary to compensate 

producers as though the milk were pooled on an MCP market to retain the milk for fluid use in 

the non-MCP market. This creates additional and non-uniform procurement costs, created by the 

regulatory structure, on some handlers. 

• If out-of-area producer milk pooled on a non-MCP market is above average protein, the 

non-MCP buyer or supplier will ordinarily need to pay extra to secure or retain that milk for fluid 

use. But the problems experienced by the handler or supplier of fluid milk do not end there. 

When such above-average protein milk is diverted for manufacturing use, the manufacturer 

knows that the diverting handler (unlike handlers diverting milk from an MCP market) has not 

been required by FMMO rules to account for the added value of high protein. As a result, the full 

value of milk components may not be paid by the manufacturer for benefit of the diverting 

handler or its producers. By adoption of MCP, cooperatives and other handlers procuring fluid 

milk would save marketing, transportation, transaction and regulatory costs, leaving more 

revenue available to pay pool producers and advancing the public policy objective of marketing 

efficiency. 

As frequently explained in the agency's milk order decisions, FMMO changes are 

appropriate when market or regulatory signals create, rather than mitigate, disorderly marketing. 
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June 14, 2023 

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3. § 900.22 Proposal Submission Requirements for NAJ Proposal 2 

a) NAJ is proposing that MCP is extended to the last four FMMOs that are pricing based 

on skim and butterfat. This proposal would help mitigate disorderly marketing in that there is 

currently an economic incentive for higher composition milk to stay out or move out of nonMCP regions. This results in the uneconomic movement of milk whereby nearby milk might 

travel to further destinations seeking MCP pricing. Converting the last four FMMO's will 

reduce these incentives. The proposal will also mitigate inequity among producers who receive 

regulated revenue not commensurate with the value of milk components they produce; handlers 

operating under conflicting pricing rules when procuring milk from multiple markets; and 

nonuniform classified prices for milk used to produce manufactured products. 

b) The purpose ofNAJ Proposal 2 is extend MCP pricing on Classes II, III, and IV to all 

FMMOs in order to mitigate the incentives that arise and have arisen to move high component 

milk into MCP orders and lower component milk into non-MCP orders among other things. 

c) Current Federal order provisions require skim milk and butterfat pricing and 

accounting for producer milk in four of the eleven FMMOs. The other seven orders use MCP for 

Classes II, III and IV. Manufacturers generally value and pay for milk based on their butterfat, 

protein and nonfat solids content. Manufacturers in non-MCP markets must bear extra costs from 

transportation, component content, and source of supply when procuring milk due to the 

incentives available in MCP markets. 

d) The proposal is expected to benefit producers by generating revenue associated with 

actual components, reducing transportation costs associated with moving higher component milk 

to MCP markets and lower component milk to non-MCP markets. Manufacturers may or may 

not face higher costs as the reflection of actual composition should generally increase the price 

for manufacturing milk, but transportation costs should be reduced. There are also costs 

associated with equipment needed for testing, but because manufacturing has migrated toward 

valuing skim components, such equipment is in place in many cases and existing government 

labs may be able to serve as a backstop. Handlers will additionally benefit by a common system 

of accounting, producer payroll, and FMMO pool reports. 
Deputy Administrator 

June 14, 2023 

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e) Small businesses will, on balance, benefit for reasons described above. Some 

producers with lower than average protein will experience less regulated revenue, while other 

producers experience more. The cross-subsidy to low protein producers by high protein 

producers will end. USDA has previously certified, e.g., that adoption of an MCP plan "will not 

have a significant economic impact on a substantial number of small entities. The amended 

orders will promote more orderly marketing of milk by producers and regulated handlers." 58 

Fed. Reg. at 33348 (1993); 60 Fed. Reg. 41833 (1995). 

f) As described above, it is expected that adoption of an MCP plan for the remaining 

FMMOs will decrease costs to handlers and cooperatives supplying the non-MCP markets by 

reducing transportation costs, among others. The proposal could possibly increase costs to 

manufacturing plants (if any) that do not now pay for the value of skim milk solids used in 

manufacturing. It is believed that costs for order administration will not significantly be 

affected, although the Market Administrator may need to support additional testing. 

g) A pre-hearing information session would be useful to explain this proposal. 

C. NAJ Proposal 3 - Class I in all orders to be valued on the actual pounds of protein, 

other solids, and nonfat solids pooled. 

NAJ proposes to amend all FMMOs to implement MCP for Class I. 

1. NAJ Proposal 3 Proposed Languages 

§ 1000. 70 Producer-settlement fund 

The market administrator shall establish and maintain a separate fund known as the 

producer-settlement fund into which the market administrator shall deposit all payments made by 

handlers pursuant to § § __ . 71, __ . 7 6, and __ . 77 of each Federal milk order and out of 

which the market administrator shall make all payments pursuant to§§ __ .72 and __ .77 of 

each Federal milk order. Payments due any handler shall be offset by any payments due from 

that handler. 

The total value of milk of the handler for the month to which § __ • 71 of each Federal milk 

order applies shall be further adjusted by the following calculation: 
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a. for producer milk in Class I determine the percent content of nonfat solids, 

protein and other solids in skim milk; 

b. for months in which the applicable Class I skim price is based upon protein 

and other solids value pursuant to §1000.50(q)(l), 

(i) calculate the value of the handler's Class I skim milk based on 

§1000.50(q)(l) protein and other solids prices and component factors 

determined pursuant to §1000.51, 

(ii) calculate the value of the handler's Class I skim milk based 

§1000.50(q)(l) protein and other solids prices and on actual protein and 

other solids content in such skim milk, 

(iii) subtract the calculated value of the handler's Class I skim milk 

based on actual protein and other solids content from the calculated value of 

the skim milk based on §1000.51 component factors. The total value of milk 

of the handler for the month shall be reduced by the difference (if positive) or 

be increased by any negative difference. 

c. for months in which the applicable Class I skim price is based upon nonfat 

solids value pursuant to §1000.50(q)(2), 

(i) calculate the value of the handler's Class I skim milk based on 

§1000.50(q)(2) nonfat solids price and component factor determined 

pursuant to §1000.51, 

(ii) calculate the value of the handler's Class I skim milk based 

§1000.50(q)(2) nonfat solids price and on actual nonfat solids content in such 

skim milk, 

(iii) subtract the calculated value of the handler's Class I skim milk 

based on actual nonfat solids content from the calculated value of the skim 

milk based on §1000.51 component factors. The total value of milk of the 

handler for the month shall be reduced by the difference (if positive) or be 

increased by any negative difference. 

The aforementioned proposed language would implement MCP in Class I nationally by 

amending a uniform provision in part 1000. 70. Alternatively, amending part 60 of each FMMO 

could implement MCP for Class I as well. Using 1001.60, as an example, the language could be 

as follows: 

§ 1001.60 Handler's value of milk. 

**** 

( a) Class I value. (1) Multiply the pounds of skim milk in Class I by the Class I 

skim milk price protein in Class I by the advance protein price, plus multiply 

the pounds of other solids in Class I by the advance other solids price (if 

Class III is higher) or Multiply the pounds of nonfat solids in Class I by the 

advance nonfat solids price (if Class IV is higher); and 
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June 14, 2023 

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If the 'average of is retained/updated, then the equation becomes the average of Class III and 

Class IV value, plus the volume of Class I skim multiplied by the adjuster, which is currently 74- 

cent cwt. 

2. Justification for NAJ Proposal 3 

In its submission NMPF observed that the FMMO Class I price formula assigns fixed 

factors to calculate the value of protein and other solids in Class I skim milk. But as protein and 

other solids have increased in producer milk, the regulated price of Class I milk has not kept 

pace. The Class I price, like other classes, should capture the increased value of protein and 

other solids for many of the same reasons why there should no longer be MCP orders and nonMCP orders. When non-MCP milk is based on fixed factors that become outdated as quickly as 

they are updated milk suppliers have incentives to transport their milk to buyers facing a higher 

valuation for their higher component milk. This contributes to market disorder by causing 

transportation costs that are otherwise unnecessary and it makes it more difficult for handlers 

subject to non-MCP pricing to attract milk. 

Additionally, having skim value in milk used for Class I purposes be reflective of actual 

skim components in producer milk is better for producers, but importantly, it can reduce or 

eliminate the misalignment between skim value in Class I relative to skim value in 

manufacturing classes in most FMMOs, which in tum can lessen the likelihood that 

manufacturing milk will be depooled. This is a positive extemality for producers in general and 

Class I suppliers and fluid milk plants more specifically. This is because Class I plants and their 

suppliers must share their Class I value when it is higher but they do not get the opportunity to 

share in the higher manufacturing values when negative PPDs and depooling occur. 

Another reason why MCP should be applied to Class I in all FMMOs is because 

reflecting actual components in respective markets will ensure that fluid milk handlers are 

neither underpaying or overpaying for what they are receiving in terms of components. An 

order-by-order analysis of skim components revealed significant differences between orders. 

Attachment A, Skim Solids All Orders, All Classes, shows that in 2022 the weighted average 

skim protein content of all orders was 3.39% which is significantly higher than the current skim 
Deputy Administrator 

June 14, 2023 

Page 17 

protein factor of 3.10%. However, individual orders varied from 3.20% (Florida) to 3.55% 

(Pacific Northwest). Other solids and nonfat solids averaged 6.02% and 9.41 %, respectively, and 

both are higher than the current factors of 5.90% and 9.00%. Individual orders showed much 

smaller variations in other solids content, 5.98% to 6.04%. The differences in nonfat solids 

mirrored protein with a low of 9.18% and a high of 9.59%. 

Attachment F, Class I Price Comparison All Orders 2019-2022, shows Class I skim 

component content value for each order. Skim value was calculated using four methods: 1) 

current skim factors of 3 .1 % protein, 5 .9% other solids, and 9 .0% nonfat solids, 2) NMPF' s 

proposed three-year average updated component factors, 3) NAJ's proposed annual updated 

component factors, and 4) actual skim components. When the variation in actual skim content is 

combined with 2022 average advance skim prices of $2.7098/lb. protein, $0.4320/lb. other 

solids, and $1.5135/lb. nonfat solids, the Class I skim price ranges from $13.32/cwt. to 

$13.95/cwt. Using three-year average component factors (2018 to 2020) of 3.30% protein, 6.00% 

other solids, and 9.30% nonfat solids Class I skim values would be $13.54/cwt. for all orders. 

Why are these differences significant? First, using single, national factors does not reflect 

actual skim components. Class I skim that is below the national factors will be paid for skim 

components that are not being delivered. Conversely, Class I skim that is above the national 

average will not be paid the full value of the components thereby lowering Class I revenues and 

lowering PPDs than if Class I values were based on actual component content. 

Furthermore, when Class I skim has higher component content than the national factors, 

the Class I skim value remains out of alignment with manufacturing skim value. If updated 

national factors are enacted the misalignment will be less than exists with the current factors but 

will remain a contributing factor to depooling manufacturing milk. 

Attachment G, Protein In All MCP Orders, shows the increasing average protein 

content in each multiple component pricing (MCP) order since 2000. Looking forward producers 

can be expected to continue to increase milk's component content. The proposed regular updates 

of single, national component factors will lead to increasing Class I skim prices for all orders 

including the four non-MCP orders which have no incentive to increase their skim components 
Deputy Administrator 

June 14, 2023 

Page 18 

because there is no direct compensation to producers for skim components. The NMPF petition 

for the hearing includes the following paragraph: 

Three of the non-MCP orders, Appalachian, Florida, and Southeast do not have an 

adequate supply of producer milk within their marketing areas to meet consumer fluid 

milk demand. Supplemental milk must be transported into these markets to meet this 

demand. The supplemental milk is typically supplied from federal orders using MCP. The 

higher relative value of skim milk in MCP versus non-MCP markets increases the cost of 

supplemental milk for the non-MCP, deficit fluid milk markets. In addition, it decreases 

the incentive to move milk from reserve supply areas to deficit fluid milk markets. Both 

make it more costly and difficult to ensure consumers have access to an adequate supply 

of fluid milk. 

Pricing Class I skim on its actual components will eliminate the reluctance to move high 

component milk from the MCP orders to the deficit fluid markets. 

3. §900.22 Proposal Submission Requirements for NAJ Proposal 3 

(a) The proposal would establish Class I pricing using MCP across FMMOs. 

Making this amendment will improve the relationship between Class I values and manufacturing 

values, reduce the incidence of negative PPDs and depooling and reduce the disincentive to 

supply Class I handlers versus manufacturing in MCP markets. 

(b) The proposal would bring the relationship between manufacturing values and 

Class I values into closer alignment such that incentives to depool, the likelihood of negative 

PPDs and incentives to incur transportation costs to seek out MCP outlets over non-MCP outlets. 

The proposal will also reduce the incidence of fluid milk handlers over paying in some markets 

and underpaying in other markets for what they receive and it is expected to generate additional 

producer revenue in aggregate. 

(c) Class I handlers are currently obligated to account for their milk based on skim 

volume and fat. The proposal would make it so that Class I handlers account for the milk they 

receive based on the skim components and fat actually received. 

( d) The proposal is expected to make it less difficult for fluid milk plants to attract 

available milk that has higher component levels. The proposal is expected to reduce the 

incentive for manufactured milk to depool and reduce the incidence of negative PPDs by 

enhancing pool values and realigning the relationship between fluid milk and manufacturing 
Deputy Administrator 

June 14, 2023 

Page 19 

milk values. The proposal is expected to increase costs to processors ( and consumers) in some 

markets and decrease the cost to processors ( and consumers) in other markets as the data 

indicates skim components vary across FMMOs Fluid milk handlers may be impacted by 

modest differences between the advanced Class I price and the value for which they must 

account based on actual components received, but it is believed that this difference is highly 

predictable and should be a minimal issue. It is not dissimilar from how they manage variations 

in butterfat. 

(e) Small business producers would be expected to benefit from this proposal as it 

is expected to bring about more orderly marketing conditions and generate additional revenue as 

skim components continue to increase. Producers serving the Class I market would be more 

likely to share in the value of manufacturing values to the extent this proposal is an additional 

step toward reducing negative PPDs and depooling. See part ( d) regarding Class I handlers. 

(f) See parts d-e, hereinabove, for potential costs to producers, handlers and 

consumers. Additionally, there should be a minimal impact on the Dairy Programs as most 

handlers are engaged in testing components and there will be an adjustment to reports required of 

industry. 

(g) A pre-hearing information session would be helpful to explain the proposal, 

especially as it relates to the timing of the updates. 

Thank you for your consideration of these proposals and I look forward to the 

opportunity to explain them on Friday June 16. 

Respectfully submitted, 

Erick Metzger 

cc: Erin Taylor (Erin.Taylor@ams.usda.gov) 
Attachment A

2019

Order Total Skim % of Total Skim Total Protein Skim Protein % Total OS Skim OS % Nonfat Solids Skim NFS %

1 - Northeast 25,710,259,025 17% 828,677,951 3.22% 1,539,488,016 5.99% 2,368,165,967 9.21%

5 - Appalachian 5,124,012,870 3% 164,649,761 3.21% 307,094,185 5.99% 471,743,946 9.21%

6 - Florida 2,417,995,467 2% 76,043,262 3.14% 143,369,309 5.93% 219,412,571 9.07%

7 - Southeast 4,716,174,582 3% 153,987,235 3.27% 282,034,283 5.98% 436,021,518 9.25%

30 - Upper Midwest 31,040,312,312 21% 1,011,439,750 3.26% 1,863,404,348 6.00% 2,874,844,098 9.26%

32 - Central 14,661,775,112 10% 486,005,158 3.31% 882,174,732 6.02% 1,368,179,890 9.33%

33 - Midwest 18,211,012,314 12% 594,637,524 3.27% 1,091,821,157 6.00% 1,686,458,681 9.26%

51 - California 23,335,470,100 16% 778,296,885 3.34% 1,396,491,962 5.98% 2,174,788,847 9.32%

124 - Pacific Northwest 8,149,679,145 5% 278,128,743 3.41% 489,395,474 6.01% 767,524,217 9.42%

126 - Southwest 12,385,030,957 8% 418,128,608 3.38% 744,375,858 6.01% 1,162,504,468 9.39%

131 - Arizona 4,659,260,702 3% 158,946,946 3.41% 278,775,867 5.98% 437,481,362 9.39%

Totals/weighted averages 150,410,982,586 100% 4,948,941,822 3.29% 9,018,425,191 6.00% 13,967,125,565 9.29%

2020

Order Total Skim % of Total Skim Total Protein Skim Protein % Total OS Skim OS % Nonfat Solids Skim NFS %

1 - Northeast 25,771,208,851 19% 834,913,544 3.24% 1,548,156,083 6.01% 2,383,069,627 9.25%

5 - Appalachian 5,116,560,342 4% 164,820,859 3.22% 307,354,940 6.01% 472,175,799 9.23%

6 - Florida 2,416,102,527 2% 75,872,240 3.14% 143,509,806 5.94% 219,382,046 9.08%

7 - Southeast 4,519,820,861 3% 148,455,947 3.28% 270,958,703 5.99% 419,414,650 9.28%

30 - Upper Midwest 19,485,737,238 15% 638,967,333 3.28% 1,170,041,658 6.00% 1,809,008,991 9.28%

32 - Central 12,791,166,939 10% 426,484,424 3.33% 770,780,493 6.03% 1,197,264,917 9.36%

33 - Midwest 17,283,681,773 13% 568,207,682 3.29% 1,038,963,875 6.01% 1,607,171,557 9.30%

51 - California 22,113,809,457 17% 734,081,803 3.32% 1,323,355,054 5.98% 2,057,436,857 9.30%

124 - Pacific Northwest 7,369,780,170 6% 249,385,351 3.38% 443,130,358 6.01% 692,515,709 9.40%

126 - Southwest 11,215,365,605 8% 383,644,992 3.42% 675,989,786 6.03% 1,059,634,778 9.45%

131 - Arizona 4,328,535,029 3% 146,174,675 3.38% 259,440,886 5.99% 405,609,139 9.37%

Totals/weighted averages 132,411,768,792 100% 4,371,008,850 3.30% 7,951,681,641 6.01% 12,322,684,070 9.31%

Protein Other Solids Nonfat Solids

Protein Other Solids Nonfat Solids
2021

Order Total Skim % of Total Skim Total Protein Skim Protein % Total OS Skim OS % Nonfat Solids Skim NFS %

1 - Northeast 25,965,226,529 20% 851,267,474 3.28% 1,559,851,784 6.01% 2,411,119,258 9.29%

5 - Appalachian 5,086,110,188 4% 164,432,124 3.23% 305,367,725 6.00% 469,799,849 9.24%

6 - Florida 2,354,594,141 2% 74,435,295 3.16% 140,584,075 5.97% 215,019,369 9.13%

7 - Southeast 4,403,443,629 3% 146,967,630 3.34% 263,857,492 5.99% 410,825,122 9.33%

30 - Upper Midwest 17,216,515,367 13% 568,927,487 3.30% 1,039,853,665 6.04% 1,608,781,152 9.34%

32 - Central 12,475,608,823 9% 420,999,794 3.37% 751,120,908 6.02% 1,172,120,702 9.40%

33 - Midwest 17,873,540,174 14% 593,215,209 3.32% 1,074,369,109 6.01% 1,667,584,318 9.33%

51 - California 22,869,916,613 17% 771,979,315 3.38% 1,368,503,746 5.98% 2,140,483,061 9.36%

124 - Pacific Northwest 7,083,207,761 5% 244,095,394 3.45% 426,558,043 6.02% 670,653,437 9.47%

126 - Southwest 11,778,481,350 9% 408,964,124 3.47% 709,710,994 6.03% 1,118,675,118 9.50%

131 - Arizona 4,292,850,159 3% 147,567,732 3.44% 257,587,255 6.00% 405,147,205 9.44%

Totals/weighted averages 131,399,494,734 100% 4,392,851,578 3.34% 7,897,364,796 6.01% 12,290,208,592 9.35%

2022

Order Total Skim % of Total Skim Total Protein Skim Protein % Total OS Skim OS % Nonfat Solids Skim NFS %

1 - Northeast 25,798,380,443 18% 848,446,947 3.29% 1,552,663,562 6.02% 2,401,110,509 9.31%

5 - Appalachian 5,208,464,202 4% 170,529,075 3.27% 313,412,038 6.02% 483,941,113 9.29%

6 - Florida 2,391,137,964 2% 76,487,399 3.20% 143,093,751 5.98% 219,581,150 9.18%

7 - Southeast 3,757,853,213 3% 126,782,624 3.37% 225,868,573 6.01% 352,651,197 9.38%

30 - Upper Midwest 30,524,460,373 21% 1,025,212,776 3.36% 1,841,974,093 6.03% 2,867,186,869 9.39%

32 - Central 15,003,543,422 10% 510,553,582 3.40% 905,505,656 6.04% 1,416,059,238 9.44%

33 - Mideast 16,121,463,338 11% 540,653,888 3.35% 970,183,213 6.02% 1,510,837,101 9.37%

51 - California 21,530,324,872 15% 744,583,931 3.46% 1,290,922,520 6.00% 2,035,506,451 9.45%

124 - Pacific Northwest 7,256,835,203 5% 257,680,484 3.55% 438,079,153 6.04% 695,759,637 9.59%

126 - Southwest 13,147,039,052 9% 457,256,028 3.48% 794,056,504 6.04% 1,251,312,532 9.52%

131 - Arizona 4,722,532,463 3% 167,118,333 3.54% 283,661,646 6.01% 450,784,152 9.55%

Totals/weighted averages 145,462,034,545 100% 4,925,305,068 3.39% 8,759,420,709 6.02% 13,684,729,950 9.41%

Protein Other Solids Nonfat Solids

Protein Other Solids Nonfat Solids
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment B

SAMPLE MPC LANGUAGE FOR CLASSES V, III, IV 

NAJ PROPOSAL 2

MILK IN THE SOUTHEAST MARKETING AREA, FEDERAL ORDER NO. 1007 

DRAFT LANGUAGE FOR INSTALLATION OF MULTIPLE COMPONENT PRICING 

*****CURRENT***** 

§ 1007.13 Producer milk. 

Except as provided for in paragraph (e) of this section, producer milk means the skim milk (or the 

skim equivalent of components of skim milk) and butterfat contained in milk of a producer that is: 

(a) Received by the operator of a pool plant directly from a producer or a handler described in § 

1000.9(c). All milk received pursuant to this paragraph shall be priced at the location of the plant where 

it is first physically received; 

(b) Received by a handler described in § 1000.9(c) in excess of the quantity delivered to pool 

plants; 

(c) Diverted by a pool plant operator to another pool plant. Milk so diverted shall be priced at 

the location of the plant to which diverted; or 

(d) Diverted by the operator of a pool plant or a handler described in § 1000.9(c) to a nonpool 

plant, subject to the following conditions: 

(1) In any month of January through June, not less than 1 days’ production of the producer whose

milk is diverted is physically received at a pool plant during the month; 

(2) In any month of July through December, not less than 1 days’ production of the producer 

whose milk is diverted is physically received at a pool plant during the month; 

(3) The total quantity of milk so diverted during the month by a cooperative association shall not 

exceed 25 percent during the months of July through November, January, and February, and 35 percent 

during the months of December and March through June, of the producer milk that the cooperative 

association caused to be delivered to, and physically received at, pool plants during the month, excluding 

the total pounds of bulk milk received directly from producers meeting for conditions as described in § 

1007.82 (c)(2)(ii) and (iii), and for which a transportation credit is requested; 

(4) The operator of a pool plant that is not a cooperative association may divert any milk that is 

not under the control of a cooperative association that diverts milk during the month pursuant to 

paragraph (d) of this section. The total quantity of milk so diverted during the month shall not exceed 25 

percent during the months of July through November, January, and February, and 35 percent during the 

months of December and March through June of the producer milk physically received at such plant (or 

such unit of plants in the case of plants that pool as a unit pursuant to § 1007.7 (e)) during the month, 

excluding the quantity of producer milk received from a handler described in § 1000.9 (c), excluding the 

total pounds of bulk milk received directly from producers meeting for conditions as described in § 

1007.82 (c)(2)(ii) and (iii), and for which a transportation credit is requested; 

(5) Any milk diverted in excess of the limits prescribed in paragraphs (d)(3) and (4) of this section 

shall not be producer milk. If the diverting handler or cooperative association fails to designate the dairy 

farmers' deliveries that will not be producer milk, no milk diverted by the handler or cooperative 

association shall be producer milk; 

(6) Diverted milk shall be priced at the location of the plant to which diverted; and 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7) The delivery day requirements and the diversion percentages in paragraphs (d)(1) through (4) 

of this section may be increased or decreased by the market administrator if the market administrator 

finds that such revision is necessary to assure orderly marketing and efficient handling of milk in the 

marketing area. Before making such a finding, the market administrator shall investigate the need for the 

revision either on the market administrator's own initiative or at the request of interested persons. If the 

investigation shows that a revision might be appropriate, the market administrator shall issue a notice 

stating that the revision is being considered and inviting written data, views, and arguments. Any decision 

to revise an applicable percentage must be issued in writing at least one day before the effective date. 

(e) Producer milk shall not include milk of a producer that is subject to inclusion and participation 

in a marketwide equalization pool under a milk classification and pricing program imposed under the 

authority of a State government maintaining marketwide pooling of returns. 

*****PROPOSED***** 

§ 1007.13 Producer milk. 

Except as provided for in paragraph (e) of this section, producer milk means the skim milk (or the 

skim equivalent of components of skim milk), including nonfat components, and butterfat contained in 

milk of a producer that is: 

(a) Received by the operator of a pool plant directly from a producer or a handler described in § 

1000.9(c). All milk received pursuant to this paragraph shall be priced at the location of the plant where 

it is first physically received; 

(b) Received by a handler described in § 1000.9(c) in excess of the quantity delivered to pool 

plants; 

(c) Diverted by a pool plant operator to another pool plant. Milk so diverted shall be priced at 

the location of the plant to which diverted; or 

(d) Diverted by the operator of a pool plant or a handler described in § 1000.9(c) to a nonpool 

plant, subject to the following conditions: 

(1) In any month of January through June, not less than 1 days’ production of the producer whose

milk is diverted is physically received at a pool plant during the month; 

(2) In any month of July through December, not less than 1 days’ production of the producer

whose milk is diverted is physically received at a pool plant during the month; 

(3) The total quantity of milk so diverted during the month by a cooperative association shall not 

exceed 25 percent during the months of July through November, January, and February, and 35 percent 

during the months of December and March through June, of the producer milk that the cooperative 

association caused to be delivered to, and physically received at, pool plants during the month, excluding 

the total pounds of bulk milk received directly from producers meeting for conditions as described in § 

1007.82 (c)(2)(ii) and (iii), and for which a transportation credit is requested; 

(4) The operator of a pool plant that is not a cooperative association may divert any milk that is 

not under the control of a cooperative association that diverts milk during the month pursuant to 

paragraph (d) of this section. The total quantity of milk so diverted during the month shall not exceed 25 

percent during the months of July through November, January, and February, and 35 percent during the 

months of December and March through June of the producer milk physically received at such plant (or 

such unit of plants in the case of plants that pool as a unit pursuant to § 1007.7 (e)) during the month, 

excluding the quantity of producer milk received from a handler described in § 1000.9 (c), excluding the 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total pounds of bulk milk received directly from producers meeting for conditions as described in § 

1007.82 (c)(2)(ii) and (iii), and for which a transportation credit is requested; 

(5) Any milk diverted in excess of the limits prescribed in paragraphs (d)(3) and (4) of this section 

shall not be producer milk. If the diverting handler or cooperative association fails to designate the dairy 

farmers' deliveries that will not be producer milk, no milk diverted by the handler or cooperative 

association shall be producer milk; 

(6) Diverted milk shall be priced at the location of the plant to which diverted; and 

(7) The delivery day requirements and the diversion percentages in paragraphs (d)(1) through (4) 

of this section may be increased or decreased by the market administrator if the market administrator 

finds that such revision is necessary to assure orderly marketing and efficient handling of milk in the 

marketing area. Before making such a finding, the market administrator shall investigate the need for the 

revision either on the market administrator's own initiative or at the request of interested persons. If the 

investigation shows that a revision might be appropriate, the market administrator shall issue a notice 

stating that the revision is being considered and inviting written data, views, and arguments. Any decision 

to revise an applicable percentage must be issued in writing at least one day before the effective date. 

(e) Producer milk shall not include milk of a producer that is subject to inclusion and participation 

in a marketwide equalization pool under a milk classification and pricing program imposed under the 

authority of a State government maintaining marketwide pooling of returns. 

*****CURRENT***** 

§ 1007.30 Reports of receipts and utilization. 

Each handler shall report monthly so that the market administrator's office receives the report on 

or before the 7th day after the end of the month, in the detail and on prescribed forms, as follows: 

(a) With respect to each of its pool plants, the quantities of skim milk and butterfat contained in 

or represented by: 

(1) Receipts of producer milk, including producer milk diverted by the reporting handler, from 

sources other than handlers described in § 1000.9(c); 

(2) Receipts of milk from handlers described in § 1000.9(c); 

(3) Receipts of fluid milk products and bulk fluid cream products from other pool plants; 

(4) Receipts of other source milk; 

(5) Receipts of bulk milk from a plant regulated under another Federal order, except Federal 

Order 1005, for which a transportation credit is requested pursuant to § 1007.82; 

(6) Receipts of producer milk described in § 1007.82(c)(2), including the identity of the individual 

producers whose milk is eligible for the transportation credit pursuant to that paragraph and the date 

that such milk was received; 

(7) For handlers submitting transportation credit requests, transfers of bulk milk to nonpool 

plants, including the dates that such milk was transferred; 

(8) Inventories at the beginning and end of the month of fluid milk products and bulk fluid cream 

products; and 

(9) The utilization or disposition of all milk and milk products required to be reported pursuant 

to this paragraph. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b) Each handler operating a partially regulated distributing plant shall report with respect to such 

plant in the same manner as prescribed for reports required by paragraph (a)(1), (a)(2), (a)(3), (a)(4), and 

(a)(8) of this section. Receipts of milk that would have been producer milk if the plant had been fully 

regulated shall be reported in lieu of producer milk. The report shall show also the quantity of any 

reconstituted skim milk in route disposition in the marketing area. 

(c) Each handler described in § 1000.9(c) shall report: 

(1) The quantities of all skim milk and butterfat contained in receipts of milk from producers; 

(2) The utilization or disposition of all such receipts; and 

(3) With respect to milk for which a cooperative association is requesting a transportation credit 

pursuant to § 1007.82, all of the information required in paragraph (a)(5), (a) (6), and (a)(7) of this section. 

(d) Each handler not specified in paragraphs (a) through (c) of this section shall report with 

respect to its receipts and utilization of milk and milk products in such manner as the market administrator 

may prescribe. 

*****PROPOSED***** 

§ 1007.30 Reports of receipts and utilization. 

Each handler shall report monthly so that the market administrator's office receives the report on or 

before the 7th day after the end of the month, in the detail and on prescribed forms, as follows: 

(a) With respect to each of its pool plants the handler shall report the following information: 

(1) Product pounds, pounds of butterfat, pounds of protein, pounds of solids-not-fat other than 

protein (other solids), and the value of the somatic cell adjustment pursuant to § 1000.50(p) 

contained in or represented by: 

(i) Receipts of producer milk, including producer milk diverted by the reporting handler, from 

sources other than handlers described in § 1000.9(c); and 

(ii) Receipts of milk from handlers described in § 1000.9(c); 

(2) Product pounds and pounds of butterfat contained in: 

(i) Receipts of fluid milk products and bulk fluid cream products from other pool plants; 

(ii) Receipts of other source milk; 

(i) Receipts of bulk milk from a plant regulated under another Federal order, except Federal 

Order 1005, for which a transportation credit is requested pursuant to § 1007.82; 

(ii) Receipts of producer milk described in § 1007.82(c)(2), including the identity of the individual 

producers whose milk is eligible for the transportation credit pursuant to that paragraph and 

the date that such milk was received; 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iii) For handlers submitting transportation credit requests, transfers of bulk milk to nonpool 

plants, including the dates that such milk was transferred; 

(iv) Inventories at the beginning and end of the month of fluid milk products and bulk fluid cream 

products; 

(3) The utilization or disposition of all milk and milk products required to be reported pursuant to this 

paragraph; and 

(4) Such other information with respect to the receipts and utilization of skim milk, butterfat, milk 

protein, other nonfat solids, and somatic cell information, as the market administrator may prescribe. 

(b) Each handler operating a partially regulated distributing plant shall report with respect to such 

plant in the same manner as prescribed for reports required by paragraph (a) of this section. Receipts of 

milk that would have been producer milk if the plant had been fully regulated shall be reported in lieu of 

producer milk. The report shall show also the quantity of any reconstituted skim milk in route disposition 

in the marketing area. 

(c) Each handler described in § 1000.9(c) shall report: 

(1) The product pounds, pounds of butterfat, pounds of protein, pounds of solids-not-fat other than 

protein (other solids), and the value of the somatic cell adjustment pursuant to § 1000.50(p), contained 

in receipts of milk from producers; and 

(2) The utilization or disposition of such receipts. 

(d) With respect to milk for which a cooperative association is requesting a transportation credit 

pursuant to § 1007.82, all of the information required in paragraphs (a)(2)(iii), (a)(2)(iv), and (a)(2)(v) of 

this section. 

(e) Each handler not specified in paragraphs (a) through (c) of this section shall report with respect 

to its receipts and utilization of milk and milk products in such manner as the market administrator may 

prescribe. 

*****CURRENT***** 

§ 1007.60 Handler's value of milk. 

For the purpose of computing a handler's obligation for producer milk, the market administrator 

shall determine for each month the value of milk of each handler with respect to each of the handler's 

pool plants and of each handler described in § 1000.9(c) with respect to milk that was not received at a 

pool plant by adding the amounts computed in paragraphs (a) through (e) of this section and subtracting 

from that total amount the value computed in paragraph (f) of this section. Receipts of nonfluid milk 

products that are distributed as labeled reconstituted milk for which payments are made to the producersettlement fund of another Federal order under § 1000.76(a)(4) or (d) shall be excluded from pricing 

under this section. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Multiply the pounds of skim milk and butterfat in producer milk that were classified in each 

class pursuant to § 1000.44(c) by the applicable skim milk and butterfat prices, and add the resulting 

amounts; except that for the months of January 2005 through March 2005, the Class I skim milk price for 

this purpose shall be the Class I skim milk price as determined in § 1000.50(b) plus $0.04 per 

hundredweight, and the Class I butterfat price for this purpose shall be the Class I butterfat price as 

determined in § 1000.50(c) plus $0.0004 per pound. The adjustments to the Class I skim milk and butterfat 

prices provided herein may be reduced by the market administrator for any month if the market 

administrator determines that the payments yet unpaid computed pursuant to paragraphs (g)(1) through 

(5) and paragraph (g)(7) of this section will be less than the amount computed pursuant to paragraph 

(g)(6) of this section. The adjustments to the Class I skim milk and butterfat prices provided herein during 

the months of January 2005 through March 2005 shall be announced along with the prices announced in 

§1000.53(b); 

(b) Multiply the pounds of skim milk and butterfat overage assigned to each class pursuant to § 

1000.44(a)(11) by the respective skim milk and butterfat prices applicable at the location of the pool plant; 

(c) Multiply the difference between the Class IV price for the preceding month and the current 

month's Class I, II, or III price, as the case may be, by the hundredweight of skim milk and butterfat 

subtracted from Class I, II, or III, respectively, pursuant to § 1000.44(a)(7) and the corresponding step of 

§ 1000.44(b); 

(d) Multiply the difference between the Class I price applicable at the location of the pool plant 

and the Class IV price by the hundredweight of skim milk and butterfat assigned to Class I pursuant to § 

1000.43(d) and the hundredweight of skim milk and butterfat subtracted from Class I pursuant to 

§ 1000.44(a)(3)(i) through (vi) and the corresponding step of § 1000.44(b), excluding receipts of bulk fluid 

cream products from a plant regulated under other Federal orders and bulk concentrated fluid milk 

products from pool plants, plants regulated under other Federal orders, and unregulated supply plants; 

(e) Multiply the Class I price applicable at the location of the nearest unregulated supply plants 

from which an equivalent volume was received by the pounds of skim milk and butterfat in receipts of 

concentrated fluid milk products assigned to Class I pursuant to § 1000.43(d) and § 1000.44(a)(3)(i) and 

the pounds of skim milk and butterfat subtracted from Class I pursuant to § 1000.44(a)(8) and the 

corresponding step of § 1000.44(b), excluding such skim milk and butterfat in receipts of fluid milk 

products from an unregulated supply plant to the extent that an equivalent amount of skim milk or 

butterfat disposed of to such plant by handlers fully regulated under any Federal milk order is classified 

and priced as Class I milk and is not used as an offset for any other payment obligation under any order; 

and 

(f) For reconstituted milk made from receipts of nonfluid milk products, multiply $1.00 (but not 

more than the difference between the Class I price applicable at the location of the pool plant and the 

Class IV price) by the hundredweight of skim milk and butterfat contained in receipts of nonfluid milk 

products that are allocated to Class I use pursuant to § 1000.43(d). 

(g) For the months of January 2005 through March 2005 for handlers who have submitted proof 

satisfactory to the market administrator to determine eligibility for reimbursement of transportation 

costs, subtract an amount equal to: 

(1) The cost of transportation on loads of producer milk delivered or rerouted to a pool 

distributing plant which were delivered as a result of hurricanes Charley, Frances, Ivan, and Jeanne; 

(2) The cost of transportation on loads of producer milk delivered or rerouted to a pool supply 

plant that was then transferred to a pool distributing plant which were delivered as a result of hurricanes 

Charley, Frances, Ivan, and Jeanne; 

(3) The cost of transportation on loads of bulk milk delivered or rerouted to a pool distributing 

plant from a pool supply plant which were delivered as a result of hurricanes Charley, Frances, Ivan, and 

Jeanne; 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4) The cost of transportation on loads of bulk milk delivered or rerouted to a pool distributing 

plant from another order plant which were delivered as a result of hurricanes Charley, Frances, Ivan, and 

Jeanne; and 

(5) The cost of transportation on loads of bulk milk transferred or diverted to a plant regulated 

under another Federal order or to other nonpool plants which were delivered as a result of hurricanes 

Charley, Frances, Ivan, and Jeanne. 

(6) The total amount of payment to all handlers under this section shall be limited for each month 

to an amount determined by multiplying the total Class I producer milk for all handlers pursuant to 

§ 1000.44(c) times $0.04 per hundredweight. 

(7) If the cost of transportation computed pursuant to paragraphs (g)(1) through (5) of this section 

exceeds the amount computed pursuant to paragraph (g)(6) of this section, the market administrator shall 

prorate such payments to each handler based on each handler's proportion of transportation costs 

submitted pursuant to paragraphs (g)(1) through (5) of this section. Transportation costs submitted 

pursuant to paragraphs (g)(1) through (5) of this section which are not paid as a result of such a proration 

shall be included in each subsequent month's transportation costs submitted pursuant to paragraphs 

(g)(1) through (5) of this section until paid, or until the time period for such payments has concluded. 

(8) The reimbursement of transportation costs pursuant to this section shall be the actual 

demonstrated cost of such transportation of bulk milk delivered or rerouted as described in paragraphs 

(g)(1) through (5) of this section, or the miles of transportation on loads of bulk milk delivered or rerouted 

as described in paragraphs (g)(1) through (5) of this section multiplied by $2.25 per loaded mile, whichever 

is less. 

(9) For each handler, the reimbursement of transportation costs pursuant to paragraph (g) of this 

section for bulk milk delivered or rerouted as described in paragraphs (g)(1) through (5) of this section 

shall be reduced by the amount of payments received for such milk movements from the transportation 

credit balancing fund pursuant to § 1007.82. 

*****PROPOSED***** 

§ 1007.60 Handler's value of milk. 

For the purpose of computing a handler's obligation for producer milk, the market administrator shall 

determine for each month the value of milk of each handler with respect to each of the handler's pool 

plants and of each handler described in § 1000.9(c) with respect to milk that was not received at a pool 

plant by adding the amounts computed in paragraphs (a) through (i) of this section and subtracting from 

that total amount the value computed in paragraph (j) of this section. Unless otherwise specified, the skim 

milk, butterfat, and the combined pounds of skim milk and butterfat referred to in this section shall result 

from the steps set forth in §1000.44(a), (b), and (c), respectively, and the nonfat components of producer 

milk in each class shall be based upon the proportion of such components in producer skim milk. Receipts 

of nonfluid milk products that are distributed as labeled reconstituted milk for which payments are made 

to the producer-settlement fund of another Federal order under § 1000.76(a)(4) or (d) shall be excluded 

from pricing under this section. 

(a) Class I value. 

(1) Multiply the pounds of skim milk in Class I by the Class I skim milk price; and 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Add an amount obtained by multiplying the pounds of butterfat in Class I by the Class I butterfat 

price. 

(3) Except that for the months of January 2005 through March 2005, the Class I skim milk price for this 

purpose shall be the Class I skim milk price as determined in § 1000.50(b) plus $0.04 per hundredweight, 

and the Class I butterfat price for this purpose shall be the Class I butterfat price as determined in 

§ 1000.50(c) plus $0.0004 per pound. The adjustments to the Class I skim milk and butterfat prices 

provided herein may be reduced by the market administrator for any month if the market administrator 

determines that the payments yet unpaid computed pursuant to paragraphs (k)(1) through (k)(5) and 

paragraph (k)(7) of this section will be less than the amount computed pursuant to paragraph (k)(6) of this 

section. The adjustments to the Class I skim milk and butterfat prices provided herein during the months 

of January 2005 through March 2005 shall be announced along with the prices announced in §1000.53(b); 

(b) Class II value. 

(1) Multiply the pounds of nonfat solids in Class II skim milk by the Class II nonfat solids price; and 

(2) Add an amount obtained by multiplying the pounds of butterfat in Class II times the Class II 

butterfat price. 

(c) Class III value. 

(1) Multiply the pounds of protein in Class III skim milk by the protein price; 

(2) Add an amount obtained by multiplying the pounds of other solids in Class III skim milk by the 

other solids price; and 

(3) Add an amount obtained by multiplying the pounds of butterfat in Class III by the butterfat price. 

(d) Class IV value. 

(1) Multiply the pounds of nonfat solids in Class IV skim milk by the nonfat solids price; and 

(2) Add an amount obtained by multiplying the pounds of butterfat in Class IV by the butterfat price. 

(e) Compute an adjustment for the somatic cell content of producer milk by multiplying the values 

reported pursuant to § 1007.30 (a)(1) and (c)(1) by the percentage of total producer milk allocated to 

Class II, Class III, and Class IV pursuant to § 1000.44(c); 

(f) Multiply the pounds of skim milk and butterfat overage assigned to each class pursuant to 

§ 1000.44(a)(11) and the corresponding step of § 1000.44(b) by the skim milk prices and butterfat prices 

applicable to each class. 

(g) Multiply the difference between the current month's Class I, II, or III price, as the case may be, and 

the Class IV price for the preceding month by the hundredweight of skim milk and butterfat subtracted 

from Class I, II, or III, respectively, pursuant to § 1000.44(a)(7) and the corresponding step of § 1000.44(b); 

(h) Multiply the difference between the Class I price applicable at the location of the pool plant and 

the Class IV price by the hundredweight of skim milk and butterfat assigned to Class I pursuant to 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

§ 1000.43(d) and the hundredweight of skim milk and butterfat subtracted from Class I pursuant to 

§ 1000.44(a)(3)(i) through (vi) and the corresponding step of § 1000.44(b), excluding receipts of bulk fluid 

cream products from plants regulated under other Federal orders and bulk concentrated fluid milk 

products from pool plants, plants regulated under other Federal orders, and unregulated supply plants. 

(i) Multiply the difference between the Class I price applicable at the location of the nearest 

unregulated supply plants from which an equivalent volume was received and the Class III price by the 

pounds of skim milk and butterfat in receipts of concentrated fluid milk products assigned to Class I 

pursuant to § 1000.43(d) and § 1000.44(a)(3)(i) and the corresponding step of § 1000.44(b) and the 

pounds of skim milk and butterfat subtracted from Class I pursuant to §1000.44(a)(8) and the 

corresponding step of §1000.44(b), excluding such skim milk and butterfat in receipts of fluid milk 

products from an unregulated supply plant to the extent that an equivalent amount of skim milk or 

butterfat disposed of to such plant by handlers fully regulated under any Federal milk order is classified 

and priced as Class I milk and is not used as an offset for any other payment obligation under any order. 

(j) For reconstituted milk made from receipts of nonfluid milk products, multiply $1.00 (but 

not more than the difference between the Class I price applicable at the location of the pool plant and the 

Class IV price) by the hundredweight of skim milk and butterfat contained in receipts of nonfluid milk 

products that are allocated to Class I use pursuant to §1000.43(d). 

(k) For the months of January 2005 through March 2005 for handlers who have submitted proof 

satisfactory to the market administrator to determine eligibility for reimbursement of transportation 

costs, subtract an amount equal to: 

(1) The cost of transportation on loads of producer milk delivered or rerouted to a pool 

distributing plant which were delivered as a result of hurricanes Charley, Frances, Ivan, and Jeanne; 

(2) The cost of transportation on loads of producer milk delivered or rerouted to a pool supply 

plant that was then transferred to a pool distributing plant which were delivered as a result of hurricanes 

Charley, Frances, Ivan, and Jeanne; 

(3) The cost of transportation on loads of bulk milk delivered or rerouted to a pool distributing 

plant from a pool supply plant which were delivered as a result of hurricanes Charley, Frances, Ivan, and 

Jeanne; 

(4) The cost of transportation on loads of bulk milk delivered or rerouted to a pool distributing 

plant from another order plant which were delivered as a result of hurricanes Charley, Frances, Ivan, and 

Jeanne; and 

(5) The cost of transportation on loads of bulk milk transferred or diverted to a plant regulated 

under another Federal order or to other nonpool plants which were delivered as a result of hurricanes 

Charley, Frances, Ivan, and Jeanne. 

(6) The total amount of payment to all handlers under this section shall be limited for each month 

to an amount determined by multiplying the total Class I producer milk for all handlers pursuant to 

§ 1000.44(c) times $0.04 per hundredweight. 

(7) If the cost of transportation computed pursuant to paragraphs (k)(1) through (k)(5) of this 

section exceeds the amount computed pursuant to paragraph (k)(6) of this section, the market 

administrator shall prorate such payments to each handler based on each handler's proportion of 

transportation costs submitted pursuant to paragraphs (k)(1) through (k)(5) of this section. Transportation 

costs submitted pursuant to paragraphs (k)(1) through (k)(5) of this section which are not paid as a result 

of such a proration shall be included in each subsequent month's transportation costs submitted pursuant 

to paragraphs (k)(1) through (k)(5) of this section until paid, or until the time period for such payments 

has concluded. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8) The reimbursement of transportation costs pursuant to this section shall be the actual 

demonstrated cost of such transportation of bulk milk delivered or rerouted as described in paragraphs 

(k)(1) through (k)(5) of this section, or the miles of transportation on loads of bulk milk delivered or 

rerouted as described in paragraphs (k)(1) through (k)(5) of this section multiplied by $2.25 per loaded 

mile, whichever is less. 

(9) For each handler, the reimbursement of transportation costs pursuant to paragraph (g) of this 

section for bulk milk delivered or rerouted as described in paragraphs (k)(1) through (k)(5) of this section 

shall be reduced by the amount of payments received for such milk movements from the transportation 

credit balancing fund pursuant to § 1007.82. 

*****CURRENT***** 

§ 1007.61 Computation of uniform prices. 

On or before the 11th day of each month, the market administrator shall compute a uniform 

butterfat price, a uniform skim milk price, and a uniform price for producer milk receipts reported for the 

prior month. The report of any handler who has not made payments required pursuant to §1007.71 for 

the preceding month shall not be included in the computation of these prices, and such handler's report 

shall not be included in the computation for succeeding months until the handler has made full payment 

of outstanding monthly obligations. 

(a) Uniform butterfat price. The uniform butterfat price per pound, rounded to the nearest onehundredth cent, shall be computed by multiplying the pounds of butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by the respective class butterfat prices and dividing the sum of such 

values by the total pounds of such butterfat. 

(b) Uniform skim milk price. The uniform skim milk price per hundredweight, rounded to the 

nearest cent, shall be computed as follows: 

(1) Combine into one total the values computed pursuant to §1007.60 for all handlers; 

(2) Add an amount equal to the minus location adjustments and subtract an amount equal to the 

plus location adjustments computed pursuant to §1007.75; 

(3) Add an amount equal to not less than one-half of the unobligated balance in the producersettlement fund; 

(4) Subtract the value of the total pounds of butterfat for all handlers. The butterfat value shall 

be computed by multiplying the pounds of butterfat by the butterfat price computed in paragraph (a) of 

this section; 

(5) Divide the resulting amount by the sum of the following for all handlers included in these 

computations: 

(i) The total skim pounds of producer milk; and 

(ii) The total skim pounds for which a value is computed pursuant to § 1007.60(e); and 

(6) Subtract not less than 4 cents not more than 5 cents. 

(c) Uniform price. The uniform price per hundredweight, rounded to the nearest cent, shall be 

the sum of the following: 

(1) Multiply the uniform butterfat price for the month pursuant to paragraph (a) of this section 

times 3.5 pounds of butterfat; and 

(2) Multiply the uniform skim milk price for the month pursuant to paragraph (b) of this section 

times 96.5 pounds of skim milk. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*****PROPOSED***** 

§ 1007.61 Computation of producer price differential. 

For each month the market administrator shall compute a producer price differential per 

hundredweight. The report of any handler who has not made payments required pursuant to §1007.71 

for the preceding month shall not be included in the computation of the producer price differential, and 

such handler’s report shall not be included in the computation for succeeding months until the handler

has made full payment of outstanding monthly obligations. Subject to the conditions of this paragraph, 

the market administrator shall compute the producer price differential in the following manner: 

(a) Combine into one total the values computed pursuant to §1007.60 for all handlers required to file 

reports prescribed in §1007.30; 

(b) Subtract the total of the values obtained by multiplying each handler’s total pounds of protein,

other solids, and butterfat contained in the milk for which an obligation was computed pursuant to 

§1007.60 by the protein price, other solids price, and the butterfat price, respectively, and the total value 

of the somatic cell adjustment pursuant to §1007.30(a)(1) and (c)(1); 

(c) Add an amount equal to the minus location adjustments and subtract an amount equal to the 

plus location adjustments computed pursuant to §1007.75; 

(d) Add an amount equal to not less than one-half of the unobligated balance in the producersettlement fund; 

(e) Divide the resulting amount by the sum of the following for all handlers included in these 

computations: 

(1) The total hundredweight of producer milk; and 

(2) The total hundredweight for which a value is computed pursuant to §1007.60(i); and 

(f) Subtract not less than 4 cents nor more than 5 cents from the price computed pursuant to 

paragraph (e) of this section. The result shall be known as the producer price differential for the month. 

*****CURRENT***** 

§ 1007.62 Announcement of uniform prices. 

On or before the 11th day after the end of the month, the market administrator shall announce 

the uniform prices for the month pursuant to § 1007.61. 
 

 

 

 

 

 

 

 

 

 

*****PROPOSED***** 

§ 1007.62 Announcement of producer prices. 

On or before the 11th day after the end of each month, the market administrator shall announce the 

following prices and information: 

(a) The producer price differential; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The somatic cell adjustment rate; 

(g) The average butterfat, protein, nonfat solids, and other solids content of producer milk; and 

(h) The statistical uniform price for milk containing 3.5 percent butterfat, computed by combining the 

Class III price and the producer price differential. 

*****CURRENT***** 

§ 1007.71 Payments to the producer-settlement fund. 

Each handler shall make a payment to the producer-settlement fund in a manner that provides 

receipt of the funds by the market administrator no later than the 12th day after the end of the month 

(except as provided in § 1000.90). Payment shall be the amount, if any, by which the amount specified in 

(a) of this section exceeds the amount specified in (b) of this section: 

(a) The total value of milk of the handler for the month as determined pursuant to § 1007.60; and 

(b) The sum of the value at the uniform prices for skim milk and butterfat, adjusted for plant 

location, of the handler's receipts of producer milk; and the value at the uniform price, as adjusted 

pursuant to § 1007.75, applicable at the location of the plant from which received of other source milk 

for which a value is computed pursuant to § 1007.60(e). 

*****PROPOSED***** 

§ 1007.71 Payments to the producer-settlement fund. 

Each handler shall make payment to the producer-settlement fund in a manner that provides receipt 

of the funds by the market administrator no later than the 12th day after the end of the month (except 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

as provided in § 1000.90). Payment shall be the amount, if any, by which the amount specified in 

paragraph (a) of this section exceeds the amount specified in paragraph (b) of this section: 

(a) The total value of milk to the handler for the month as determined pursuant to § 1007.60. 

(b) The sum of: 

(1) An amount obtained by multiplying the total hundredweight of producer milk as determined 

pursuant to § 1000.44(c) by the producer price differential as adjusted pursuant to § 1007.75; 

(2) An amount obtained by multiplying the total pounds of protein, other solids, and butterfat 

contained in producer milk by the protein, other solids, and butterfat prices respectively; 

(3) The total value of the somatic cell adjustment to producer milk; and 

(4) An amount obtained by multiplying the pounds of skim milk and butterfat for which a value was 

computed pursuant to § 1007.60(i) by the producer price differential as adjusted pursuant to § 1007.75 

for the location of the plant from which received. 

*****CURRENT***** 

§ 1007.73 Payments to producers and to cooperative associations. 

(a) Each handler that is not paying a cooperative association for producer milk shall pay each 

producer as follows: 

(1) Partial payment. For each producer who has not discontinued shipments as of the 23rd day of 

the month, payment shall be made so that it is received by the producer on or before the 26th day of the 

month (except as provided in § 1000.90) for milk received during the first 15 days of the month at not less 

than the 90 percent of the preceding month's uniform price, adjusted for plant location pursuant to 

§ 1007.75 and proper deductions authorized in writing by the producer. 

(2) Final payment. For milk received during the month, a payment computed as follows shall be 

made so that it is received by each producer one day after the payment date required in § 1007.72: 

(i) Multiply the hundredweight of producer skim milk received times the uniform skim milk price 

for the month; 

(ii) Multiply the pounds of butterfat received times the uniform butterfat price for the month; 

(iii) Multiply the hundredweight of producer milk received times the plant location adjustment 

pursuant to § 1007.75; and 

(iv) Add the amounts computed in paragraph (a)(2)(i), (ii), and (iii) of the section, and from that 

sum: 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A) Subtract the partial payment made pursuant to paragraph (a)(1) of this section; 

(B) Subtract the deduction for marketing services pursuant to § 1000.86; 

(C) Add or subtract for errors made in previous payments to the producer; and 

(D) Subtract proper deductions authorized in writing by the producer. 

(b) One day before partial and final payments are due pursuant to paragraph (a) of this section, 

each handler shall pay a cooperative association for milk received as follows: 

(1) Partial payment to a cooperative association for bulk milk received directly from producers' 

farms. For bulk milk (including the milk of producers who are not members of such association and who 

the market administrator determines have authorized the cooperative association to collect payment for 

their milk) received during the first 15 days of the month from a cooperative association in any capacity, 

except as the operator of a pool plant, the payment shall be equal to the hundredweight of milk received 

multiplied by 90 percent of the preceding month's uniform price, adjusted for plant location pursuant to 

§ 1007.75. 

(2) Partial payment to a cooperative association for milk transferred from its pool plant. For bulk 

fluid milk products and bulk fluid cream products received during the first 15 days of the month from a 

cooperative association in its capacity as the operator of a pool plant, the partial payment shall be at the 

pool plant operator's estimated use value of the milk using the most recent class prices available for skim 

milk and butterfat at the receiving plant's location. 

(3) Final payment to a cooperative association for milk transferred from its pool plant. For bulk 

fluid milk products and bulk fluid cream products received during the month from a cooperative 

association in its capacity as the operator of a pool plant, the final payment shall be the classified value of 

such milk as determined by multiplying the pounds of skim milk and butterfat assigned to each class 

pursuant to § 1000.44 by the class prices for the month at the receiving plant's location, and subtracting 

from this sum the partial payment made pursuant to paragraph (b)(2) of this section. 

(4) Final payment to a cooperative association for bulk milk received directly from producers' 

farms. For bulk milk received from a cooperative association during the month, including the milk of 

producers who are not members of such association and who the market administrator determines have 

authorized the cooperative association to collect payment for their milk, the final payment for such milk 

shall be an amount equal to the sum of the individual payments otherwise payable for such milk pursuant 

to paragraph (a)(2) of this section. 

(c) If a handler has not received full payment from the market administrator pursuant to 

§ 1007.72 by the payment date specified in paragraph (a) or (b) of this section, the handler may reduce 

payments pursuant to paragraphs (a) and (b) of this section, but by not more than the amount of the 

underpayment. The payments shall be completed on the next scheduled payment date after receipt of 

the balance due from the market administrator. 

(d) If a handler claims that a required payment to a producer cannot be made because the 

producer is deceased or cannot be located, or because the cooperative association or its lawful successor 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

or assignee is no longer in existence, the payment shall be made to the producer-settlement fund, and in 

the event that the handler subsequently locates and pays the producer or a lawful claimant, or in the 

event that the handler no longer exists and a lawful claim is later established, the market administrator 

shall make the required payment from the producer- settlement fund to the handler or to the lawful 

claimant as the case may be. 

(e) In making payments to producers pursuant to this section, each pool plant operator shall 

furnish each producer, except a producer whose milk was received from a cooperative association 

described in § 1000.9(a) or (c), a supporting statement in such form that it may be retained by the recipient 

which shall show: 

(1) The name, address, Grade A identifier assigned by a duly constituted regulatory agency, and 

the payroll number of the producer; 

(2) The month and dates that milk was received from the producer, including the daily and total 

pounds of milk received; 

(3) The total pounds of butterfat in the producer's milk; 

(4) The minimum rate or rates at which payment to the producer is required pursuant to this 

order; 

(5) The rate used in making payment if the rate is other than the applicable minimum rate; 

(6) The amount, or rate per hundredweight, and nature of each deduction claimed by the handler; 

and 

(7) The net amount of payment to the producer or cooperative association. 

*****PROPOSED***** 

§ 1007.73 Payments to producers and to cooperative associations. 

(a) Each handler shall pay each producer for producer milk for which payment is not made to a 

cooperative association pursuant to paragraph (b) of this section, as follows: 

(1) Partial payment. For each producer who has not discontinued shipments as of the 23rd day of the 

month, payment shall be made so that it is received by the producer on or before the 26th day of the 

month (except as provided in § 1000.90) for milk received during the first 15 days of the month at not less 

than 90 percent of the preceding month’s statistical uniform price, adjusted for plant location pursuant

to § 1007.75 and proper deductions authorized in writing by the producer. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Final payment. For milk received during the month, payment shall be made so that it is received 

by each producer one day after the payment date required in § 1007.72, in an amount not less than the 

following computation: 

(i) Multiply the hundredweight of producer milk received times the producer price differential for 

the month as adjusted pursuant to § 1007.75; 

(ii) Multiply the pounds of butterfat received times the butterfat price for the month; 

(iii) Multiply the pounds of protein received times the protein price for the month; 

(iv) Multiply the pounds of other solids received times the other solids price for the month; 

(v) Multiply the hundredweight of milk received times the somatic cell adjustment for the month; 

(vi) Add the amounts computed in paragraphs (a)(2)(i) through (v) of this section, and from that sum: 

(A) Subtract the partial payment made pursuant to paragraph (a)(1) of this section; 

(B) Subtract the deduction for marketing services pursuant to § 1000.86; 

(C) Add or subtract for errors made in previous payments to the producer subject to approval by the 

market administrator; and 

(D) Subtract proper deductions authorized in writing by the producer. 

(b) One day before partial and final payments are due pursuant to paragraph (a) of this section each 

handler shall pay a cooperative association for milk received as follows: 

(1) Partial payment to a cooperative association for bulk milk received directly from producers' farms. 

For bulk milk (including the milk of producers who are not members of such association and who the 

market administrator determines have authorized the cooperative association to collect payment for their 

milk) received during the first 15 days of the month from a cooperative association in any capacity, except 

as the operator of a pool plant, the payment shall be equal to the hundredweight of milk received 

multiplied by not less than 90 percent of the preceding month’s statistical uniform price, adjusted for

plant location pursuant to § 1007.75. 

(2) Partial payment to a cooperative association for milk transferred from its pool plant. For bulk milk 

products and bulk fluid cream products received during the first 15 days of the month from a cooperative 

association in its capacity as the operator of a pool plant, the partial payment shall be at the pool plant 

operator's estimated use value of the milk using the most recent class prices available at the receiving 

plant's location. 

(3) Final payment to a cooperative association for milk transferred from its pool plant. For bulk milk 

products and bulk fluid cream products received during the month from a cooperative association in its 

capacity as the operator of a pool plant, the final payment for such receipts shall be determined as follows: 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(i) Multiply the hundredweight of Class I skim milk times the Class I skim milk price for the month plus 

the pounds of Class I butterfat times the Class I butterfat price for the month. The Class I prices to be used 

shall be the prices effective at the location of the receiving plant; 

(ii) Multiply the pounds of nonfat solids in Class II skim milk by the Class II nonfat solids price; 

(iii) Multiply the pounds of butterfat in Class II times the Class II butterfat price; 

(iv) Multiply the pounds of nonfat solids in Class IV times the nonfat solids price; 

(v) Multiply the pounds of butterfat in Class III and Class IV milk times the butterfat price; 

(vi) Multiply the pounds of protein in Class III milk times the protein price; 

(vii) Multiply the pounds of other solids in Class III milk times the other solids price; 

(viii) Multiply the hundredweight of Class II, Class III, and Class IV milk times the somatic cell 

adjustment; and 

(ix) Add together the amounts computed in paragraphs (b)(3)(i) through (viii) of this section and from 

that sum deduct any payments made pursuant to paragraph (b)(2) of this section. 

(4) Final payment to a cooperative association for bulk milk received directly from producers' farms. 

For bulk milk received from a cooperative association during the month, including the milk of producers 

who are not members of such association and who the market administrator determines have authorized 

the cooperative association to collect payment for their milk, the final payment for such milk shall be an 

amount equal to the sum of the individual payments otherwise payable for such milk pursuant to 

paragraph (a)(2) of this section. 

(c) If a handler has not received full payment from the market administrator pursuant to § 1007.72 by 

the payment date specified in paragraph (a) or (b) of this section, the handler may reduce payments 

pursuant to paragraphs (a) and (b) of this section, but by not more than the amount of the underpayment. 

The payments shall be completed on the next scheduled payment date after receipt of the balance due 

from the market administrator. 

(d) If a handler claims that a required payment to a producer cannot be made because the producer 

is deceased or cannot be located, or because the cooperative association or its lawful successor or 

assignee is no longer in existence, the payment shall be made to the producer-settlement fund, and in the 

event that the handler subsequently locates and pays the producer or a lawful claimant, or in the event 

that the handler no longer exists and a lawful claim is later established, the market administrator shall 

make the required payment from the producer- settlement fund to the handler or to the lawful claimant 

as the case may be. 

(e) In making payments to producers pursuant to this section, each pool plant operator shall furnish 

each producer, except a producer whose milk was received from a cooperative association handler 

described in § 1000.9(a) or (c), a supporting statement in such form that it may be retained by the 

recipient which shall show: 
 

 

 

 

(1) The name, address, Grade A identifier assigned by a duly constituted regulatory agency, and the 

payroll number of the producer; 

(2) The month and dates that milk was received from the producer, including the daily and total 

pounds of milk received; 

(3) The total pounds of butterfat, protein, and other solids contained in the producer's milk; 

(4) The somatic cell count of the producer's milk; 

(5) The minimum rate or rates at which payment to the producer is required pursuant to the order 

in this part; 

(6) The rate used in making payment if the rate is other than the applicable minimum rate; 

(7) The amount, or rate per hundredweight, or rate per pound of component, and the nature of each 

deduction claimed by the handler; and 

(8) The net amount of payment to the producer or cooperative association. 
) 

/ 

I 

/ 

/ 

■ 

□ 

□ 

□ 

■ 

Prairie Farms Dairy, Inc.

Homestead Creamery Winchester Farms Dairy

Hiland - Springfield

Dean Foods Westover Dairy Memory Lane Dairy Marva Maid Dairy

Memory Lane Dairy Memory Lane Dairy

Prairie Farms Dairy, Inc. New Dairy - London

Turner Dairy 

Heritage Farms Dairy Dairy Fresh, LLC WS

Hiland-Fayetteville

Purity Dairies Inc Purity Dairies Inc

Broadacre Dairies

Maola (Hunter) Hiland - Memphis Milkco, Inc.

Heritage Farms Dairy Hiland - Little Rock

Mayfield Dairy Farms, Inc. Pet Dairy

Hiland - Fort Smith

Publix - Atlanta

Eastside Jersey - Birmingham Mayfield Dairy Farms, Inc.

Centennial Farms Centennial Farms

Prairie Farms Dairy Prairie Farms Dairy Prairie Farms Dairy New Dairy - Charleston

New Dairy - Hattiesburg New Dairy - Cowarts

Sparksmans Creamery

Kleinpeter Farms Dairy Inc 

Attachment C

Milk Production 

Federal Order No. 5 - May 2015 

Prairie Farms Dairy, Inc. 

Homestead Creamery Winchester Farms Dairy 

Hiland - Springfield 

Dean Foods Westover Dairy Memory Lane Dairy Marva Maid Dairy

Memory Lane Dairy 

Prairie Farms Dairy, Inc. New Dairy - London

Turner Dairy 

Heritage Farms Dairy Dairy Fresh, LLC WS 

Hiland-Fayetteville 

Purity Dairies Inc 

Broadacre Dairies Maola (Hunter) Hiland - Memphis Milkco, Inc. 

Heritage Farms Dairy Hiland - Little Rock 

Mayfield Dairy Farms, Inc. Pet Dairy 

Hiland - Fort Smith 

Publix - Atlanta 

Eastside Jersey - Birmingham Mayfield Dairy Farms, Inc. 

Centennial Farms 

Prairie Farms Dairy New Dairy - Charleston 

New Dairy - Hattiesburg New Dairy - Cowarts 

Sparksmans Creamery 

Kleinpeter Farms Dairy Inc 

May 2015 Milk Production 

FO 5 

0 to 500,000 (27) 

500,000 to 1,000,000 (20) 

1,000,000 to 2,000,000 (39) 

2,000,000 to 10,000,000 (50) 

10,000,000 to 41,700,000 (6) 

Dairy Fresh, LLC HP 

Map does not include restricted data. 

82.87% of the producer milk for this month is represented on the map 

Prepared by: Market Administrator 

Louisville, KY 
/ 

■ 

□ 

□ 

□ 

■ 

Homeland 

Prairie Farms Dairy, Inc.

Hiland - Springfield

Winchester Farms Dairy

Shamrock Foods Company

Homestead Creamery

Memory Lane Dairy

Memory Lane Dairy 

New Dairy - London Westover Dairy

Marva Maid Dairy

Hiland-Fayetteville

Hiland - Little Rock

Heritage Farms Dairy

Purity Dairies Inc

Heritage Farms Dairy

Hiland - Memphis Mayfield Dairy Farms, Inc.

Prairie Farms Dairy, Inc.

Broadacre Dairies

Broadacre Dairies

Milkco, Inc.

Dairy Fresh, LLC WS

Pet Dairy

Maola (Hunter)

Hiland - Fort Smith

Publix - Atlanta

Prairie Farms Dairy 

Eastside Jersey - Birmingham

Centennial Farms 

New Dairy - Charleston

New Dairy - Hattiesburg New Dairy - Cowarts

Kleinpeter Farms Dairy Inc 

TG Lee - Orange City Eastside Jersey 

Milk Production 

Federal Order No. 5 - May 2020 

Prairie Farms Dairy, Inc. 

Hiland - Springfield 

Winchester Farms Dairy 

Shamrock Foods Company 

Homestead Creamery 

Memory Lane Dairy 

Memory Lane Dairy 

New Dairy - London Westover Dairy 

Marva Maid Dairy 

Hiland-Fayetteville 

Hiland - Little Rock 

Heritage Farms Dairy 

Purity Dairies Inc 

Heritage Farms Dairy 

Hiland - Memphis Mayfield Dairy Farms, Inc. 

Prairie Farms Dairy, Inc. 

Broadacre Dairies 

Broadacre Dairies 

Milkco, Inc. 

Dairy Fresh, LLC WS 

Pet Dairy 

Maola (Hunter) 

Hiland - Fort Smith 

Publix - Atlanta 

Prairie Farms Dairy 

Eastside Jersey - Birmingham 

Centennial Farms 

New Dairy - Charleston 

New Dairy - Hattiesburg New Dairy - Cowarts 

Kleinpeter Farms Dairy Inc 

TG Lee - Orange City Eastside Jersey 

Dairy Fresh, LLC HP 

May 2020 Milk Production 

FO 5 

0 to 500,000 (25) 

500,000 to 1,000,000 (26) 

1,000,000 to 2,000,000 (18) 

2,000,000 to 10,000,000 (46) 

10,000,000 to 47,700,000 (6) 

Map does not include restricted data. 

79.28% of the producer milk for this month is represented on the map 

Prepared by: Market Administrator 

Louisville, KY 
J , l/ \ 

Homeland 

■ 

□ 

□ 

□ 

■ 

Prairie Farms Dairy, Inc.

Winchester Farms Dairy Homestead Creamery

Shamrock Foods Company Hiland - Springfield

Westover Dairy Memory Lane Dairy New Dairy - London Marva Maid Dairy

Memory Lane Dairy 

Prairie Farms Dairy, Inc. Dairy Fresh, LLC WS

Hiland-Fayetteville

Purity Dairies Inc 

Broadacre Dairies

Hiland - Memphis Heritage Farms Dairy Maola (Hunter)

Milkco, Inc.

Hiland - Fort Smith

Pet Dairy

Mayfield Dairy Farms, Inc.

Publix - Atlanta

Hiland - Little Rock Eastside Jersey - Birmingham

Centennial Farms 

Prairie Farms Dairy New Dairy - Charleston

New Dairy - Hattiesburg New Dairy - Cowarts

Kleinpeter Farms Dairy Inc

Eastside Jersey TG Lee - Orange City

New Dairy - Lafayette

TG Lee - Orlando

M & B of Tampa Inc.

Publix- Lakeland

Milk Production 

Federal Order No. 5 - May 2021 

Prairie Farms Dairy, Inc. 

Winchester Farms Dairy Homestead Creamery 

Shamrock Foods Company Hiland - Springfield 

Westover Dairy Memory Lane Dairy New Dairy - London Marva Maid Dairy 

Memory Lane Dairy 

Prairie Farms Dairy, Inc. Dairy Fresh, LLC WS 

Hiland-Fayetteville 

Purity Dairies Inc 

Broadacre Dairies 

Hiland - Memphis Heritage Farms Dairy Maola (Hunter)

Milkco, Inc. 

Hiland - Fort Smith 

Pet Dairy 

Mayfield Dairy Farms, Inc. 

Publix - Atlanta 

Hiland - Little Rock Eastside Jersey - Birmingham 

Centennial Farms 

Prairie Farms Dairy New Dairy - Charleston 

New Dairy - Hattiesburg New Dairy - Cowarts 

Kleinpeter Farms Dairy Inc 

Eastside Jersey TG Lee - Orange City 

New Dairy - Lafayette 

May 2021 Milk Production 

FO 5 

0 to 500,000 (23) 

500,000 to 1,000,000 (22) 

1,000,000 to 2,000,000 (16) 

2,000,000 to 10,000,000 (41) 

10,000,000 to 42,100,000 (7) 

Kleinpeter Prepared by: Market Administrator 

Louisville, KY 

TG Lee - Orlando 

M & B of Tampa Inc. Publix- Lakeland 

Dairy Fresh, LLC HP 

Map does not include restricted data. 

75.41% of the producer milk for this month is represented on the map. 
Publix - Deerfield

New Dairy - Miami New Dairy - Miami New Dairy - Miami New Dairy - Miami New Dairy - Miami

Publix - Atlanta Eastside Jersey - Birmingham New Dairy - Charleston Centennial Farms Centennial Farms

New Dairy - Cowarts Sparksmans Creamery

New Dairy - Hattiesburg

Eastside Jersey TG Lee - Orange City

Brown's Dairy

TG Lee - Orlando

M & B of Tampa Inc.

Publix- Lakeland

Dakin Dairy

/ 

Sunshine States 

McArthur Next 

■ 

□ 

□ 

□ 

■ 

Publix - Atlanta Eastside Jersey - Birmingham New Dairy - Charleston Centennial Farms 

New Dairy - Cowarts Sparksmans Creamery 

New Dairy - Hattiesburg 

Eastside Jersey TG Lee - Orange City 

Brown's Dairy 

TG Lee - Orlando 

M & B of Tampa Inc. 

Publix- Lakeland 

Dakin Dairy 

Publix - Deerfield 

New Dairy - Miami 

Milk Production 

Federal Order No. 6 - May 2015 

May 2015 Milk Production 

FO 6 

0 to 10,000,000 (2) 

10,000,000 to 15,000,000 (4) 

15,000,000 to 18,000,000 (1) 

18,000,000 to 25,000,000 (2) 

25,000,000 to 64,700,000 (1) 

Map does not include restricted data. 

80.67% of the producer milk for this 

month is represented on the map 

Prepared by: Market Administrator 

Louisville, KY 
Publix - Deerfield

Lakeland

New Dairy - Miami New Dairy - Miami New Dairy - Miami New Dairy - Miami New Dairy - Miami

■ 

□ 

□ 

□ 

■ 

Eastside Jersey - Birmingham Publix - Atlanta

Centennial Farms 

New Dairy - Charleston

Prairie Farms Dairy 

New Dairy - Cowarts

New Dairy - Hattiesburg

Eastside Jersey TG Lee - Orange City

TG Lee - Orlando

M & B of Tampa Inc.

PublixDakin Dairy

Eastside Jersey - Birmingham Publix - Atlanta Milk Production 

Federal Order No. 6 - May 2020 Centennial Farms 

New Dairy - Charleston 

Prairie Farms Dairy 

New Dairy - Cowarts 

New Dairy - Hattiesburg 

Eastside Jersey TG Lee - Orange City 

TG Lee - Orlando 

M & B of Tampa Inc. 

Publix- Lakeland 

Dakin Dairy 

Publix - Deerfield 

New Dairy - Miami 

Map does not include restricted data. 

85.74% of the producer milk for this 

month is represented on the map. 

May 2020 Milk Production 

FO 6 

0 to 10,000,000 (3) 

10,000,000 to 15,000,000 (5) 

15,000,000 to 18,000,000 (1) 

18,000,000 to 25,000,000 (1) 

25,000,000 to 56,400,000 (1) 

New Dairy - Winter Haven 

McArthur Dairy 

Prepared by: Market Administrator 

Louisville, KY 
Eastsi7ey - Birmingham 

,irie Farms Dairy 

/ 

New Dairy - Hattiesburg 

/ 

M & B of Tampa Inc. 

-

~ ,a~Cfy 

-~-liG Lee - Orlando 

Publix - Deerfield 

- New Dairy - Miami 

■ 

□ 

□ 

□ 

■ 

Milk Production 

Federal Order No. 6 - May 2021 

Map does not include restricted data. 

73.07% of the producer milk for this 

month is represented on the map. 

May 2021 Milk Production 

FO 6 

0 to 10,000,000 (3) 

10,000,000 to 15,000,000 (3) 

15,000,000 to 18,000,000 (1) 

18,000,000 to 25,000,000 (0) 

25,000,000 to 53,800,000 (2) 

Prepared by: Market Administrator 

Louisville, KY 
/ 

Country Delila 

/ 

■ 

□ 

□ 

□ 

■ 

Hiland - Springfield

Prairie Farms Dairy, Inc.

Winchester Farms Dairy

Shamrock Foods Company

Homestead Creamery

Memory Lane Dairy

Memory Lane Dairy Memory Lane Dairy

Dean Foods

New Dairy - London Westover Dairy

Marva Maid Dairy

Turner Dairy 

Hiland-Fayetteville

Prairie Farms Dairy, Inc. Dairy Fresh, LLC WS

Hiland - Little Rock

Purity Dairies Inc

Heritage Farms Dairy

Heritage Farms Dairy 

Broadacre Dairies

Milkco, Inc. Maola (Hunter)

Hiland - Fort Smith Hiland - Memphis

Mayfield Dairy Farms, Inc. Pet Dairy

Publix - Atlanta

Eastside Jersey - Birmingham Mayfield Dairy Farms, Inc.

Prairie Farms Dairy Prairie Farms Dairy Prairie Farms Dairy

Centennial Farms Centennial Farms

New Dairy - Charleston

New Dairy - Hattiesburg New Dairy - Cowarts

Sparksmans Creamery

Kleinpeter Farms Dairy Inc 

Eastside Jersey TG Lee - Orange City

Brown's Dairy

New Dairy - Lafayette

TG Lee - Orlando

M & B of Tampa Inc.

Publix- Lakeland

Dakin Dairy

Milk Production 

Federal Order No. 7 - May 2015 

Hiland - Springfield 

Prairie Farms Dairy, Inc. 

Winchester Farms Dairy 

Shamrock Foods Company 

Homestead Creamery 

Memory Lane Dairy 

Memory Lane Dairy 

Dean Foods 

New Dairy - London Westover Dairy 

Marva Maid Dairy 

Turner Dairy 

Hiland-Fayetteville 

Prairie Farms Dairy, Inc. Dairy Fresh, LLC WS 

Hiland - Little Rock 

Purity Dairies Inc 

Heritage Farms Dairy 

Heritage Farms Dairy 

Broadacre Dairies 

Milkco, Inc. Maola (Hunter) 

Hiland - Fort Smith Hiland - Memphis 

Mayfield Dairy Farms, Inc. Pet Dairy 

Publix - Atlanta 

Eastside Jersey - Birmingham Mayfield Dairy Farms, Inc. 

Prairie Farms Dairy 

Centennial Farms 

New Dairy - Charleston 

New Dairy - Hattiesburg New Dairy - Cowarts 

Sparksmans Creamery 

Kleinpeter Farms Dairy Inc 

Eastside Jersey TG Lee - Orange City 

Brown's Dairy 

New Dairy - Lafayette 

TG Lee - Orlando 

M & B of Tampa Inc. 

Publix- Lakeland 

Dakin Dairy 

Dairy Fresh, LLC HP 

Map does not include restricted data. 

70.75% of the producer milk for this 

month is represented on the map 

May 2015 Milk Production 

FO 7 

0 to 500,000 (35) 

500,000 to 1,000,000 (32) 

1,000,000 to 5,000,000 (44) 

5,000,000 to 10,000,000 (12) 

10,000,000 to 24,600,000 (5) 

Prepared by: Market Administrator 

Louisville, KY 
- .-

• 

/ 

~. 

I 

■ 

□ 

□ 

□ 

■ 

Prairie Farms Dairy, Inc.

Winchester Farms Dairy Homestead Creamery

Shamrock Foods Company Hiland - Springfield

Westover Dairy Memory Lane Dairy New Dairy - London Marva Maid Dairy

Memory Lane Dairy 

Prairie Farms Dairy, Inc.

Dairy Fresh, LLC WS Broadacre Dairies Hiland-Fayetteville Heritage Farms Dairy

Purity Dairies Inc Milkco, Inc.

Maola (Hunter) Heritage Farms Dairy

Mayfield Dairy Farms, Inc.

Hiland - Little Rock Hiland - Memphis Pet Dairy

Hiland - Fort Smith

Publix - Atlanta

Eastside Jersey - Birmingham

Centennial Farms 

Prairie Farms Dairy 

New Dairy - Charleston

New Dairy - Hattiesburg New Dairy - Cowarts

Kleinpeter Farms Dairy Inc 

Eastside Jersey TG Lee - Orange City

New Dairy - Lafayette

TG Lee - Orlando

M & B of Tampa Inc.

Publix- Lakeland

Dakin Dairy

Milk Production 

Federal Order No. 7 - May 2020 

Prairie Farms Dairy, Inc. 

Winchester Farms Dairy Homestead Creamery 

Shamrock Foods Company Hiland - Springfield 

Westover Dairy Memory Lane Dairy New Dairy - London Marva Maid Dairy

Memory Lane Dairy 

Prairie Farms Dairy, Inc. 

Dairy Fresh, LLC WS Broadacre Dairies Hiland-Fayetteville Heritage Farms Dairy 

Purity Dairies Inc Milkco, Inc. 

Maola (Hunter) Heritage Farms Dairy 

Mayfield Dairy Farms, Inc. 

Hiland - Little Rock Hiland - Memphis Pet Dairy 

Hiland - Fort Smith 

Publix - Atlanta 

Eastside Jersey - Birmingham 

Centennial Farms 

Prairie Farms Dairy 

New Dairy - Charleston 

Dairy Fresh, LLC HP 

May 2020 Milk Production 

FO 7 

0 to 500,000 (29) 

500,000 to 1,000,000 (16) 

1,000,000 to 5,000,000 (15) 

5,000,000 to 10,000,000 (9) 

10,000,000 to 22,900,000 (4) 

Map does not include restricted data. 

50.70% of the producer milk for this 

month is represented on the map. 

Prepared by: Market Administrator 

Louisville, KY 

New Dairy - Hattiesburg New Dairy - Cowarts 

Kleinpeter Farms Dairy Inc 

Eastside Jersey TG Lee - Orange City 

New Dairy - Lafayette 

TG Lee - Orlando 

M & B of Tampa Inc. 

Publix- Lakeland 

Dakin Dairy 
( \ \ 

■ 

□ 

□ 

□ 

■ 

Prairie Farms Dairy, Inc.

Winchester Farms Dairy Homestead Creamery

Hiland - Springfield

Shamrock Foods Company Memory Lane Dairy New Dairy - London

We Marva Maid Dairy stover Dairy Memory Lane Dairy Memory Lane Dairy

Dairy Fresh, LLC WS

Hiland-Fayetteville

Purity Dairies Inc 

Prairie Farms Dairy, Inc.

Broadacre Dairies

Hiland - Memphis Heritage Farms Dairy Maola (Hunter) Milkco, Inc.

Hiland - Fort Smith

Pet Dairy

Mayfield Dairy Farms, Inc.

Publix - Atlanta

Hiland - Little Rock Eastside Jersey - Birmingham

Centennial Farms Centennial Farms

Prairie Farms Dairy New Dairy - Charleston

New Dairy - Hattiesburg New Dairy - Cowarts

Kleinpeter Farms Dairy Inc

Eastside Jersey TG Lee - Orange City

New Dairy - Lafayette

TG Lee - Orlando

M & B of Tampa Inc. Publix- Lakeland

Milk Production 

Federal Order No. 7 - May 2021 

Prairie Farms Dairy, Inc. 

Winchester Farms Dairy Homestead Creamery 

Hiland - Springfield 

Shamrock Foods Company Memory Lane Dairy New Dairy - London 

We Marva Maid Dairy stover Dairy Memory Lane Dairy 

Dairy Fresh, LLC WS 

Hiland-Fayetteville 

Purity Dairies Inc 

Prairie Farms Dairy, Inc. 

Broadacre Dairies 

Hiland - Memphis Heritage Farms Dairy Maola (Hunter) Milkco, Inc. 

Hiland - Fort Smith 

Pet Dairy 

Mayfield Dairy Farms, Inc. 

Publix - Atlanta 

Hiland - Little Rock Eastside Jersey - Birmingham 

Centennial Farms 

Prairie Farms Dairy New Dairy - Charleston 

New Dairy - Hattiesburg New Dairy - Cowarts 

Kleinpeter Farms Dairy Inc 

Eastside Jersey TG Lee - Orange City 

New Dairy - Lafayette 

TG Lee - Orlando 

M & B of Tampa Inc. Publix- Lakeland 

Dairy Fresh, LLC HP 

Map does not include restricted data. 

44.95% of the producer milk for this 

month is represented on the map. 

May 2021 Milk Production 

FO 7 

0 to 500,000 (21) 

500,000 to 1,000,000 (16) 

1,000,000 to 5,000,000 (18) 

5,000,000 to 10,000,000 (4) 

10,000,000 to 22,900,000 (5) 

Prepared by: Market Administrator 

New Dairy - Winter Haven Louisville, KY 
 

 

Attachment D

Option 1 – Total Miles = 951 (Fewer Miles Option) 

Miles From: To: Lafayette Conroe 

Sulphur Springs 346 274 

Hereford 808 605 

Presumed Component Tests: Butterfat Protein O-Solids Skim Milk 

Sulphur Springs 4.700% 3.650% 5.750% 95.300% 

Hereford 3.800% 3.250% 5.750% 96.200% 

Load of Milk = 50,000 pounds 

Cost to Haul Milk = $4.00 $3.95 per loaded mile 

Option 1., Sulphur Springs, TX to Lafayette, LA & Hereford, TX to Conroe, TX (Fewer Miles Option) 

Leg A: F.O. 7 -Uniform skim milk value: $ 13.3950 x 47,650 = $ 6,383 

F.O. 7 -Uniform butterfat value: $ 1.8801 x 2,350 = $ 4,418 

Milk Value $ 10,801 

miles 

hauling cost 346 x $ 4.00 = $ (1,384) 

NET RETURN AT LAFAYETTE $ 9,417 

Leg B: F.O. 126 - butterfat value: $ 1.8904 x 1,900 = $ 3,592 

F.O. 126 - protein value: $ 2.7630 x 1,625 = $ 4,490 

F.O. 126 - other solids value: $ 0.3866 x 2,875 = $ 1,111 

F.O. 126 - PPD value at Conroe: $ 0.7000 x 50,000 = $ 350 

Milk Value $ 9,543 

miles 

hauling cost 605 x $ 4.00 = $ (2,420) 

NET RETURN AT CONROE $ 7,123 

OPTION 1. GRAND TOTAL NET RETURN F.O.B. THE TWO PLANTS $ 16,540 

(All prices are 2021 simple averages) 
Option 2 – Total Miles = 1,082 (Greater Miles Option) 

95 

I 

qj 

-.:}' 

.s 

~o 

~(l, 

~(l, .-::,..<t' _..._ 

Sulphur Springs to· 

Conroe - 274 mile 

Option 2., Sulp

Leg C: 

Leg D: 

GAIN TO HANDLER FROM MOVING MILK GREATER DISTANCE $ 94

per hundredweight $ 0.0935

But the cost of hauling is greater by $ 524

per hundredweight $ 0.5240

ADDITIONAL MILES DRIVEN 131 
 

 

 

 - -

Attachment E

3.04

3.06

3.08

3.10

3.12

3.14

3.16

3.18

3.20

3.22

3.24

3.26

3.28

3.30

3.32

3.34

3.36

3.38

3.40

3.42

3.44

3.46

3.48

3.50

18-Jan

18-Feb

18-Mar

18-Apr

18-May

18-Jun

18-Jul

18-Aug

18-Sep

18-Oct

18-Nov

18-Dec

19-Jan

19-Feb

19-Mar

19-Apr

19-May

19-Jun

19-Jul

19-Aug

19-Sep

19-Oct

19-Nov

19-Dec

20-Jan

20-Feb

20-Mar

20-Apr

20-May

20-Jun

20-Jul

20-Aug

20-Sep

20-Oct

20-Nov

20-Dec

21-Jan

21-Feb

21-Mar

21-Apr

21-May

21-Jun

21-Jul

21-Aug

21-Sep

21-Oct

21-Nov

21-Dec

Protein

%

Protein % Comparison 2018-2021

FO 7 FO 126

The monthly pounds and component tests for producer milk produced in FO 126 area 5N and pooled on Federal Order 7 and FO 126 are based on producer

weights data provided by the handlers to the FO 126 Market Administrator. Producer Milk data for milk produced in FO 126 area 5N and pooled on FO 5 is restricted.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment F

Class I Skim Value

Year 2019

Class I Pounds Class I % Skim Price

Order Skim Protein OS NFS Protein OS NFS Current NMPF 3-yr. Annual Actual Comp

1 - Northeast 8,096,876,560 260,108,104 484,096,518 744,204,622 3.21% 5.98% 9.19% $ 8.40 $ 8.66 $ 8.69 $ 8.61

5 - Appalachian 3,665,501,936 117,859,071 219,686,267 337,545,339 3.22% 5.99% 9.21% $ 8.40 $ 8.66 $ 8.69 $ 8.62

6 - Florida 2,044,708,135 64,300,361 121,238,964 185,539,325 3.14% 5.93% 9.07% $ 8.40 $ 8.66 $ 8.69 $ 8.48

7 - Southeast 3,360,564,226 109,860,018 200,968,034 310,828,052 3.27% 5.98% 9.25% $ 8.40 $ 8.66 $ 8.69 $ 8.69

30 - Upper Midwest 2,672,987,549 87,197,438 160,252,095 247,422,721 3.26% 6.00% 9.26% $ 8.40 $ 8.66 $ 8.69 $ 8.69

32 - Central 4,508,589,080 149,441,229 271,052,319 419,921,668 3.31% 6.01% 9.31% $ 8.40 $ 8.66 $ 8.69 $ 8.77

33 - Mideast 6,423,576,489 209,982,951 385,212,144 595,226,005 3.27% 6.00% 9.27% $ 8.40 $ 8.66 $ 8.69 $ 8.70

51 - California 5,199,474,726 171,991,341 310,708,392 482,699,733 3.31% 5.98% 9.28% $ 8.40 $ 8.66 $ 8.69 $ 8.75

124 - Pacific Northwest 1,692,158,896 56,949,576 101,746,542 158,696,118 3.37% 6.01% 9.38% $ 8.40 $ 8.66 $ 8.69 $ 8.85

126 - Southwest 4,054,170,009 136,385,698 243,464,187 379,849,866 3.36% 6.01% 9.37% $ 8.40 $ 8.66 $ 8.69 $ 8.85

131 - Arizona 1,213,704,522 41,402,027 72,603,908 113,945,806 3.41% 5.98% 9.39% $ 8.40 $ 8.66 $ 8.69 $ 8.90

National Average All Classes (2019) 3.29% 6.00% 9.29%

Annual Update (2017) 3.27% 5.98% 9.25%

NMPF Proposal (2015-2017 avg) 3.25% 5.98% 9.22%

Advance component values $ 2.1326 $ 0.1982 $ 0.8379

Year 2020

Class I Pounds Class I % Skim Price

Order Skim Protein OS NFS Protein OS NFS Current NMPF 3-yr. Annual Actual Comp

1 - Northeast 8,020,338,506 258,982,109 481,353,824 740,335,933 3.23% 6.00% 9.23% $ 11.13 $ 11.52 $ 11.60 $ 11.49

5 - Appalachian 3,841,780,642 123,697,031 230,762,872 354,459,904 3.22% 6.01% 9.23% $ 11.13 $ 11.52 $ 11.60 $ 11.47

6 - Florida 2,013,437,003 63,233,035 119,591,578 182,824,613 3.14% 5.94% 9.08% $ 11.13 $ 11.52 $ 11.60 $ 11.25

7 - Southeast 3,166,655,763 104,019,125 189,841,223 293,860,347 3.28% 6.00% 9.28% $ 11.13 $ 11.52 $ 11.60 $ 11.62

30 - Upper Midwest 2,597,880,369 85,121,701 156,037,307 240,865,077 3.28% 6.01% 9.27% $ 11.13 $ 11.52 $ 11.60 $ 11.60

32 - Central 4,585,539,206 152,695,507 276,259,239 427,971,093 3.33% 6.02% 9.33% $ 11.13 $ 11.52 $ 11.60 $ 11.73

33 - Mideast 6,619,673,529 217,608,123 397,950,742 615,572,769 3.29% 6.01% 9.30% $ 11.13 $ 11.52 $ 11.60 $ 11.63

51 - California 4,994,536,521 165,678,866 298,743,868 464,422,734 3.32% 5.98% 9.30% $ 11.13 $ 11.52 $ 11.60 $ 11.69

124 - Pacific Northwest 1,663,925,724 56,259,334 100,176,167 156,435,501 3.38% 6.02% 9.40% $ 11.13 $ 11.52 $ 11.60 $ 11.86

126 - Southwest 4,060,304,166 136,923,454 244,677,423 381,600,888 3.37% 6.03% 9.40% $ 11.13 $ 11.52 $ 11.60 $ 11.84

131 - Arizona 1,218,542,115 41,138,095 73,020,098 114,155,937 3.38% 5.99% 9.37% $ 11.13 $ 11.52 $ 11.60 $ 11.83

National Average All Classes (2020) 3.30% 6.01% 9.31%

Annual Update (2018) 3.28% 5.99% 9.27%

NMPF Proposal (2015-2017 avg) 3.25% 5.98% 9.22%

Advance component values $ 3.8533 $ 0.1592 $ 0.8771
Class I Skim Value

Year 2021

Order Skim Protein OS NFS Protein OS NFS Current NMPF 3-yr. Annual Actual Comp

1 - Northeast 7,948,852,222 259,829,102 476,814,673 736,643,775 3.27% 6.00% 9.27% $ 10.83 $ 11.17 $ 11.26 $ 11.22

5 - Appalachian 3,662,145,190 118,466,291 219,871,427 338,337,718 3.23% 6.00% 9.24% $ 10.83 $ 11.17 $ 11.26 $ 11.16

6 - Florida 1,963,771,091 62,083,443 117,255,932 179,339,375 3.16% 5.97% 9.13% $ 10.83 $ 11.17 $ 11.26 $ 11.00

7 - Southeast 3,022,272,288 100,928,245 181,092,915 282,021,160 3.34% 5.99% 9.33% $ 10.83 $ 11.17 $ 11.26 $ 11.35

30 - Upper Midwest 2,441,358,024 80,960,836 147,106,003 227,947,995 3.32% 6.03% 9.34% $ 10.83 $ 11.17 $ 11.26 $ 11.33

32 - Central 4,313,699,427 145,146,542 259,395,878 403,789,009 3.36% 6.01% 9.36% $ 10.83 $ 11.17 $ 11.26 $ 11.41

33 - Mideast 6,324,920,328 210,480,594 380,358,568 590,639,550 3.33% 6.01% 9.34% $ 10.83 $ 11.17 $ 11.26 $ 11.34

51 - California 4,732,471,769 158,905,926 283,387,882 442,293,808 3.36% 5.99% 9.35% $ 10.83 $ 11.17 $ 11.26 $ 11.39

124 - Pacific Northwest 1,574,138,302 53,956,845 94,929,492 148,886,337 3.43% 6.03% 9.46% $ 10.83 $ 11.17 $ 11.26 $ 11.55

126 - Southwest 3,864,503,689 132,090,640 232,660,103 364,750,763 3.42% 6.02% 9.44% $ 10.83 $ 11.17 $ 11.26 $ 11.52

131 - Arizona 1,333,321,248 45,845,339 79,998,951 125,841,813 3.44% 6.00% 9.44% $ 10.83 $ 11.17 $ 11.26 $ 11.55

3.34% 6.01% 9.35%

National Average All Classes (2021) 3.34% 6.01% 9.35%

Annual Update (2019) 3.29% 6.00% 9.29%

NMPF Proposal (2015-2017 avg) 3.25% 5.98% 9.22%

Advance component values $ 2.7694 $ 0.3634 $ 1.0502

Class I Skim Value

Year 2022

Order Skim Protein OS NFS Protein OS NFS Current NMPF 3-yr. Annual Actual Comp

1 - Northeast 7,774,866,438 255,357,278 467,328,395 722,685,673 3.28% 6.01% 9.30% $ 13.03 $ 13.54 $ 13.55 $ 13.52

5 - Appalachian 3,730,086,824 122,201,689 224,450,764 346,652,453 3.28% 6.02% 9.29% $ 13.03 $ 13.54 $ 13.55 $ 13.51

6 - Florida 2,012,886,429 64,402,984 120,460,664 184,863,648 3.20% 5.98% 9.18% $ 13.03 $ 13.54 $ 13.55 $ 13.32

7 - Southeast 2,765,721,656 93,328,742 166,236,214 259,564,957 3.37% 6.01% 9.39% $ 13.03 $ 13.54 $ 13.55 $ 13.71

30 - Upper Midwest 2,149,730,957 71,824,700 129,441,697 201,348,290 3.34% 6.02% 9.37% $ 13.03 $ 13.54 $ 13.55 $ 13.66

32 - Central 4,266,784,360 144,286,077 256,807,675 401,093,752 3.38% 6.02% 9.40% $ 13.03 $ 13.54 $ 13.55 $ 13.74

33 - Mideast 6,076,231,191 204,487,806 365,587,869 569,961,467 3.37% 6.02% 9.38% $ 13.03 $ 13.54 $ 13.55 $ 13.70

51 - California 4,617,237,027 155,797,634 276,317,238 432,114,872 3.37% 5.98% 9.36% $ 13.03 $ 13.54 $ 13.55 $ 13.69

124 - Pacific Northwest 1,586,287,911 55,089,373 95,788,108 150,877,481 3.47% 6.04% 9.51% $ 13.03 $ 13.54 $ 13.55 $ 13.95

126 - Southwest 3,773,723,884 129,968,991 227,705,461 357,674,417 3.44% 6.03% 9.48% $ 13.03 $ 13.54 $ 13.55 $ 13.88

131 - Arizona 1,301,886,308 46,092,709 78,189,727 124,283,653 3.54% 6.01% 9.55% $ 13.03 $ 13.54 $ 13.55 $ 14.06

National Average All Classes (2022) 3.39% 6.02% 9.41%

Annual (2020) 3.30% 6.01% 9.31%

NMPF Proposal (2018-2020) 3.30% 6.00% 9.30%

Advance component values $ 2.7098

 

 

 

 

 

 $ 0.4320 $ 1.5135

Class I Pounds Class I % Skim Price

Class I Pounds Class I % Skim Price
 

...... 

Attachment G

2.9

2.95

3

3.05

3.1

3.15

3.2

3.25

3.3

Protein

%

Source: https://mpr.datamart.ams.usda.gov/

Average Protein Test in MCP Orders

Protein