The August 18 post covered the pricing trends of the commodities used to price produce milk. One had upward trends and the rest had lower trends. This post will concentrate on trends in component levels and their impact on producer revenue.
The Agricultural Marketing Service (AMS) calculates and publishes data for all Classes of milk. For Class III, the largest Class, the protein value is calculated based on 3.0% and butterfat is based on 3.5%. The resulting Class III prices are quoted in many published articles. The 2024 YTD actual levels of milk protein and butterfat are 3.3% and 4.2%.
The actual percent varies within each Federal Order and each herd. In 2024, the actual milk protein levels have varied from 3.2% to 3.40% and butterfat has varied from 3.9% to 4.4% within the Federal Orders. Herd level data is not available, but the variance would be much wider.
Aug. 26, 2024
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