Impacts of higher processing costs could drive the spread between all-milk and mailbox prices wider.

A wide gap in September Federal Milk Marketing Order (FMMO) Class IV and Class milk prices extends the incentive to depool Class IV milk.

June 2022 “mailbox” prices averaged about $1.03 per hundredweight (cwt) less than announced average “all-milk” prices for the same month.

Analyzing the Class I mover, the spread in the monthly advanced Class III skim milk pricing factor ($7.04 per cwt) and advanced Class IV skim milk pricing factor ($12.67 per cwt) is $5.63 per cwt, the widest since July 2020.

Digest highlights

• FMMO Forum registration deadline here
• July fluid sales down
• Dairy Defined: Plant-based beverage ‘bust’ is here
• Online organic dairy ‘origin of livestock’ rule training offered
• GDT product prices higher
• Finstad joins U.S. House Agriculture Committee
• Southeast: The Dairy Alliance launches sustainability documentary

Numerous projects approved in first round of funding focus on dairy producers and commodities.

The widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class III milk prices pushed Class IV pooling lower.

A widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class milk prices ensures there’s even more incentive to depool Class IV milk.

September’s Federal Milk Marketing Order (FMMO) advanced Class I base price will hit a six-month low, while likely escalating producer irritation over the 2019 “Class I mover” formula change.