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How would FMMO changes affect milk prices?

A recent analysis of some of the proposed changes to the Federal Milk Marketing Order (FMMO) system was conducted to quantitatively assess what these changes would mean to U.S. milk prices. At the time it was conducted, the analysis assumed the FMMO changes would begin in 2023, but with the FMMO hearing still ongoing, any final changes will not occur until sometime in 2024.


The following scenarios were run based on proposed FMMO changes by the National

Milk Producers Federation:

  1. Increase the make allowances in the component price formulas for butter to $0.21 per pound, for nonfat dry milk to $0.21 per pound, for cheese to $0.24 per pound, and for dry whey to $0.23 per pound;


Scott Brown

Dec. 20, 2023

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