The Federal Milk Marketing Order (FMMO)
Natzke dave
Editor / Progressive Dairy
advanced Class I base priceset a new all-time record high in June at $25.87 per hundredweight (cwt). The June 2022 price is up 42 cents from May 2022 and $7.58 more than June 2021.

The six-month average 2022 Class I base is $23.32 per cwt, up $7.62 from the January-June 2021 average of $16.13 cwt and is the highest average for that period on record.

Class I zone differentials are added to the base price of each FMMO principal pricing point to determine the actual Class I price in each FMMO. With those additions, June 2022 Class I prices will average approximately $28.69 per cwt across all FMMOs, ranging from a high of $31.27 per cwt in the Florida FMMO #6 to a low of $27.67 per cwt in the Upper Midwest FMMO #30.

In June, the newer Class I mover “average-of plus 74 cents” formula will help boost Class I prices paid to producers compared to the previous ”higher-of” formula.


The difference between the advanced Class III skim milk pricing factor ($15.04 per cwt) and the advanced Class IV skim milk pricing factor ($14.80 per cwt) declined from May to just 24 cents per cwt.

Based on Progressive Dairy calculations, the Class I mover calculated under the higher-of formula would have resulted in a Class I base price of $25.27 per cwt, 60 cents less than the price determined using the average-of plus 74 cents formula.  end mark

Dave Natzke