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The U.S. Dairy Pricing System

Author

Listed:
  • Manchester, Alden
  • Weimar, Mark
  • Fallert, Richard

Abstract

Pricing milk and milk products must accommodate seasonally variable supply and demand. The current system of Federal price supports and Federal milk marketing orders has evolved from legislation enacted during the 1930’s and 1940’s. All farm milk is supported by government purchasing programs for manufactured products. Federal and State milk marketing orders provide additional pricing mechanisms to the price support program and cover nearly all fluid-grade milk produced in the United States. Federal orders set minimum prices for raw fluid-grade milk according to its use that processors must pay to dairy farmers or their cooperative. Federal orders do not determine how the milk may be used or how much milk is produced or marketed.

Suggested Citation

  • Manchester, Alden & Weimar, Mark & Fallert, Richard, 1994. "The U.S. Dairy Pricing System," Agricultural Information Bulletins 309710, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersab:309710
    DOI: 10.22004/ag.econ.309710
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