California milk jug bottle cap.
December 10, 2018

The New Federal Order Will Bump Prices in California

 |  By: Jim Dickrell

It appears that the new Federal Milk Marketing Order in California will do what proponents hoped it would do: Bump milk prices.


California’s Federal Order No. 51 announced Class prices last week, with the Class III price coming in at $14.44/cwt and Class IV at $15.06/cwt. Under the old system, the California 4b cheese milk prices for November would have been $13.55/cwt.


“So, while both of these prices are down from October, there is definitely going to be more money in California producers’ pockets for November’s milk because of the implementation of the Federal Milk Marketing Order,” says Kevin Abernathy, General Manager of the California Milk Producers Council.


The Class I price for Los Angeles was announced at $17.82, which includes a $2.10 Class I Differential and a 20¢ processor assessment.


Exactly how much more California dairy farmers will see in their milk check remains to be seen. That final blend price depends on the utilization percentage of each of the four classes of milk, among other factors.