What Has The FMMO Update Done To Milk Checks?

Federal Milk Marketing Orders set the rules for how milk is priced across the country, shaping returns for farmers, processors, and ultimately consumers. A historic update took effect June 1, and now that we’ve been under the revised system for a few months, what has it meant for Wisconsin’s dairy farmers? Mike Brown, vice president for dairy market intelligence at T.C. Jacoby & Company, says early projections showed Class III milk prices could drop by as much as 90 cents per hundredweight, or about 7.5 cents per gallon. Some producers may have seen that, he notes, but many other factors, like processor-producer negotiations, continue to influence milk checks. Regardless, Brown emphasizes the update was necessary. Looking ahead, he questions whether the Class III order will remain relevant given the strength of the cheese market, pointing out that growing demand for cheese and finding more value in whey, a byproduct of cheese, will be key to boosting returns for Class III dairy farmers. He also expects that negotiated contracts heading into the new year will help bring added premiums at the farm gate.

See omnystudio.com/listener for privacy information.