Over the past year, there has been a lot of discussion about how to modernize milk prices through the federal order system to recognize industry changes, since the last major update in 2000 and to correct a change made in the 2018 farm bill that greatly affect Class I milk price.
The federal order system was created in the 1930s to establish orderly milk markets and return market power to the producers. The market disorder was caused by the perishable nature of fluid milk, the seasonal variability in production that didn’t match the fluctuation in consumer consumption and the multiple uses of milk.
Today these challenges still exist with the federal order working to ensure consumers have an adequate supply of fresh fluid milk. Also working to assist dairy farmers in developing stable and reliable milk markets along with promoting and maintaining orderly milk marketing conditions.
By: Cloe Desirée Juarez
edairynews.com
