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The U.S. Department of Agriculture (USDA) has proposed amendments to the uniform pricing formulas for all 11 Federal milk marketing orders, following a 49-day national hearing from August 23, 2023, to January 30, 2024. These changes, based on 21 proposals from the dairy industry, include updates to milk composition factors, revisions to the base Class I skim milk price formula, and adjustments to manufacturing allowances for cheese, butter, nonfat dry milk, and dry whey. Additionally, USDA recommends removing certain cheese prices from the Dairy Product Mandatory Reporting Program and updating Class I differential values to better align with current market costs.
The American Farm Bureau Federation (AFBF), which provided testimony during the hearing, supports these proposed amendments. Key recommendations include setting milk composition factors at 3.3% true protein, 6.0% other solids, and 9.3% nonfat solids, and revising the base Class I skim milk price to reflect the higher of advanced Class III or Class IV skim milk prices. The proposal also introduces a rolling monthly Class I extended shelf-life adjustment to ensure better price equity for extended shelf life products. A fuller analysis of these changes can be viewed below:
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