U.S. dairy producers shipping milk into federal milk marketing orders faced a new milk pricing system effective January 1, 2000, as a result of federal order reforms implemented by USDA and initiated by U.S. Congress. Seven of the 11 federal orders that were created employed a multiple-component pricing system that paid dairy producers on the basis of milk fat, true protein, and other dairy solids. This publication explains seasonality of milk components, impacts of herd size and management, and the impact of low component levels on milk prices.
Dairy Risk-Management Education: Economic Returns Under Multiple-Component Pricing
Title Dairy Risk-Management Education: Economic Returns Under Multiple-Component Pricing
Number of Pages 4