Farm Progress

California dairy industry transitions to FMMO

Federal Milk Marketing Order begins pricing California milk on Nov. 1

September 21, 2018

1 Min Read

As California milk pricing transitions to the Federal Milk Marketing Order on Nov. 1, the state order will end Oct. 31. California milk producers, through their dairy cooperatives, approved joining the FMMO earlier this year after petitioning the USDA for a California federal order.

This means some changes will take place in the classing system California producers have become accustomed to. The biggest change will be in seen definition changes of the various classes.

  • Class 1 fluid pricing will be announced Sept., 10 for October milk, according to the California Department of Food and Agriculture.

  • Classes 2 and 3 under the California system (soft products) will be lumped under Class II federal milk.

  • Class 4a (butter and powder) under the California system becomes federal Class IV milk.

  • Class 4b (cheese) under the California system becomes federal Class III milk.

Pricing Activities

The final class prices for California Classes 1, 2, 3, 4a and 4b milk will be as follows:

  • Class 1 were announced Sept. 10 for October milk;

  • Classes 2 and 3 prices will be announced Oct. 1 for October milk; and,

  • Final announced pool price for October milk announced Nov. 21.

The last reporting of monthly statistical reports of milk production and manufactured products to the CDFA will be Nov. 15 for October milk. The USDA will perform these activities beginning December for November milk.

The CDFA will continue to perform contracts, licensing renewals and bonding requirements of milk handlers.

Administrative activities and reporting for the Quota Implementation Plan (QIP), which California milk producers approved in a referendum, will commence Nov. 1. The Producer Review Board will meet prior to Nov. 1 to review transition steps the CDFA has taken to establish the plan.

Questions regarding the transition or QIP can be directed to Donald Shippelhoute at (916) 900-5124.

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