Milk glass and pitcher
March 2, 2020

Class I Utilization Falls to 28% in Federal Orders

 |  By: Jim Dickrell

Dairy economists with Upper Midwest Federal Milk Marketing Order report that Class I utilization fell to 28% in 2019, down from 28.9% in 2018.

The numbers are a bit fuzzy, though, because of California joining the Federal Order system at the end of last year.

“Producer milk in 2019 for all 11 Federal Orders combined totaled 156.6 billion pounds, up from 141.7 billion pounds in 2018,” report the economists. “However, removing the producer milk from California, the 2019 total would have been 3.9% below 2018.”

The good news is the milk prices rebounded nearly $2 last year. “The weighted average uniform price for all Federal Orders combined for 2019 was $17.35/cwt, up from $15.51 in 2018,” say the economists.

Following is the Class I utilization rate for all Federal Orders, ranked from highest to lowest utilization:

Federal Order                                    Class I utilization

Florida                                                  83.3%

Appalachia                                          70.3

Southeast                                           70.1

Mideast                                               34.6

Southwest                                          32.1

Northeast                                           31.0

Central                                                 30.2

Arizona                                                 25.6

California                                             21.9

Pacific Northwest                            20.3

Upper Midwest                                  8.4

 

You can read more detail here.