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These purchase prices are set high enough to enable dairy processors to pay farmers at least the support price for the milk they use in manufacturing these products. The 2002 farm bill (P.L. 107-171, Sec. 1501) mandated a support price of $9.90/ cwt , effective through December 31, 2007, when the program by law was scheduled to expire.
Milk used for fluid (Class I) consumption generally receives the highest price and lower minimum prices are paid for the three classes of milk used for manufactured dairy products: Class II (yogurt, cottage cheese, ice cream, and other soft manufactured products), Class III (cheese), and Class IV (butter and nonfat dry milk).
This classified pricing system requires handlers to pay a higher price for milk used for fluid consumption (Class I) than for milk used in manufactured dairy products such as yogurt, ice cream, cheese, butter and nonfat dry milk (Class II, Class III and Class IV products). The Federal Milk Marketing Order (FMMO) does not include certain states ...
In United States agricultural policy, utilization rates refer to the percentage of milk in federal milk marketing orders that is used in each of the classes: Class IV (butter and nonfat dry milk), Class III , Class II (all other manufactured products), Class I (milk used for fluid consumption).
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Cow's milk contains, on average, 3.4% protein, 3.6% fat, and 4.6% lactose, 0.7% minerals [111] and supplies 66 kcal of energy per 100 grams. See also Nutritional value further on in this article and more complete lists at online sources that list values and differences in categories.
Cow Milk Production by State in 2016 After a brief rise following the Great Recession of 2008-9, milk prices crashed again in the late 2010s to well under $3 a gallon at major grocers in the United States. Pennsylvania has 8,500 farms with 555,000 dairy cows. Milk produced in Pennsylvania yields an annual revenue of about US$1.5 billion. [70]
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