Agricultural Marketing Service
About AMS Newsroom Opportunity Online Forms Help Contact Us
Search AMS
   Browse by Subject
You are here: Home / Price Formulas - 2000
Marketing Orders
Price Formulas - 2000  
Note: Milk prices are per 100 pounds or cwt., rounded to the nearest cent. Component prices are per pound, rounded to nearest one-hundredth cent. Cheese, dry whey, butter, and nonfat dry milk prices are weighted averages of weekly NASS survey prices.

Class I:
Class I Price = (Class I skim milk price x 0.965) + (Class I butterfat price x 3.5).
Class I Skim Milk Price = Higher of advanced Class III or IV skim milk pricing factors + applicable Class I differential.
Class I Butterfat Price = Advanced butterfat pricing factor + (applicable Class I differential divided by 100).
Note: Advanced pricing factors are computed using applicable price formulas listed below, except that product price averages are for two weeks.

Class II:
Class II Price = (Class II skim milk price x 0.965) + (Class II butterfat price x 3.5).
Class II Skim Milk Price = Advanced Class IV skim milk pricing factor + $0.70. Class II Butterfat Price = Butterfat price + $0.007.
Class II Nonfat Solids Price = Class II skim milk price divided by 9.

Class III:
Class III Price = (Class III skim milk price x 0.965) + (Butterfat price x 3.5).
Class III Skim Milk Price = (Protein price x 3.1) + (Other solids price x 5.9).
Protein Price = ((Cheese price - 0.1702) x 1.405) + ((((Cheese price - 0.1702)
x 1.582) - Butterfat price) x 1.28).
Other Solids Price = (Dry whey price - 0.137) divided by 0.968.
Butterfat Price = (Butter price - 0.114) divided by 0.82.

Class IV:
Class IV Price = (Class IV skim milk price x 0.965) + (Butterfat price x 3.5).
Class IV Skim Milk Price = Nonfat solids price x 9.
Nonfat Solids Price = (Nonfat dry milk price - 0.137) divided by 1.02.
Butterfat Price = See Class III.

Producer Prices:
Butterfat Price = See Class III.Protein Price = See Class III.
Others solids Price = See Class III.
Somatic Cell Adjustment Rate = Cheese price x 0.0005, rounded to fifth decimal place. Rate is per 1,000 somatic cell count.

I Want To
  View other information on milk prices and price announcements  
  Get information on milk marketings and utilization of milk by class  
  Get information on sales of fluid milk products  
  Get information on handlers and plants  
  Get information on producers or cooperatives  
  Access the Milk Marketing Order Statistics database  
  Dairy Market News  
  NASS Publications  
  Milk Market Administrator Web Sites  
  Dairy Programs  
  Annual Summaries of Federal Milk Order Statistics  
  Milk Marketing Order Statistics Home  
  Last Modified Date: 06/18/2010