In news affecting dairy producers' bottom lines the last full week of April 2025:
- May Class I drops to $18.37 per cwt
- Final rule reauthorizes the Dairy Forward Pricing Program
- IDFA announces plan to eliminate artificial colors in dairy foods for schools
- Chobani invests $1.2 billion in New York processing plant
- USDA delivers disaster relief to farmers and ranchers
May Class I drops to $18.37 per cwt
The Federal Milk Marketing Order (FMMO) advanced Class I base price tumbled $1.20 per hundredweight (cwt) from April to May for a Class I base price of $18.37 per cwt for May. At $18.37 per cwt, the price is down 9 cents from May 2024.
Class I zone differentials are added to the base price principle pricing points to determine the actual Class I price in each FMMO. With those additions, May’s Class I prices will average about $21.19 per cwt across all FMMOs, ranging from a high of $23.77 per cwt in the Florida FMMO to a low of $20.17 per cwt in the Upper Midwest FMMO. Those prices will impact May regional FMMO uniform prices which will be announced June 11-14.
May’s base Class I skim milk price fell $1.30 per cwt from the previous month, whereas the advanced butterfat pricing factor rose but to a small degree at $2.64 per pound, up 2 cents from April.
The spread in the monthly advanced Class III skim milk pricing factor ($8.40 per cwt) and advanced Class IV skim milk pricing factor ($9.02 per cwt) shrunk to 62 cents for May. This means the current but soon-to-be altered Class I mover formula positively impacted Class I prices in May.
Based on Progressive Dairy calculations, using the Class I mover calculated under the “higher-of” formula would have resulted in a May Class I base price of about $17.96 per cwt, 41 cents lower than the actual May price determined using the “average of plus 74 cents” formula.
The change in the formula back to “higher-of” calculations – along with zone differential adjustments and other changes – are included in the FMMO modernization provisions set to be implemented June 1.
Final rule reauthorizes the Dairy Forward Pricing Program
In a final rule announced April 23, 2025, the American Relief Act of 2025 extends the authorization of the Dairy Forward Pricing Program (DFPP) through Sept. 30, 2025.
The DFPP was initially developed under the 2008 Farm Bill to allow milk handlers to pay producers or cooperative associations a negotiated price for milk instead of the FMMO minimum blend price for Classes II, III and IV. This reauthorization – now the fifth in the program’s history – allows handlers to enter into new forward price contracts until Sept. 30 for milk marketed on April 24 and thereafter. Each contract may extend until Sept. 30, 2028.
Other provisions to the DFPP remain the same.
IDFA announces plan to eliminate artificial colors in dairy foods for schools
Dairy food companies announced a significant commitment that will reshape school meal menus across the nation for 30 million children. The International Dairy Foods Association (IDFA) announced the IDFA Healthy Dairy in Schools Commitment, a voluntary proactive pledge to eliminate the use of certified artificial colors in milk, cheese and yogurt products sold to K-12 schools for the National School Lunch and Breakfast Programs by the start of the 2026-27 school year, or July 2026.
The goal of the commitment is to eliminate the use of Red 3, Red 40, Green 3, Blue 1, Blue 2, Yellow 5 and Yellow 6 in any milk, cheese and/or yogurt products sold to K-12 schools for reimbursable school meals by July 2026.
IDFA stated the vast majority of dairy products sold to schools today do not contain any certified artificial colors, as most dairy processors have chosen not to use or decided to remove or replace these ingredients in the past.
Moving forward, all companies supporting the Healthy Dairy in Schools Commitment have pledged to discontinue products containing certified artificial colors or to reformulate products with natural ingredients, joining the majority of companies that will continue making products for schools without certified artificial colors. At the same time, dairy companies will continue to reduce added sugar and work with school nutrition professionals, parents and students to educate them about the benefits of milk, cheese and yogurt in healthy diets.
“The Healthy Dairy in Schools Commitment goes above and beyond state and federal regulations to help ensure children in grades K-12 continue to have access to the milk, cheese and yogurt options they enjoy without any certified artificial colors,” said Michael Dykes, DVM, IDFA president and CEO.
U.S. Secretary of Agriculture Brooke Rollins said, “America’s dairy farmers and milk processors have always led the way in providing our families and schoolchildren with healthy, nutritious and delicious milk products. While I look forward to getting whole milk back into our schools, today’s announcement shows how the dairy industry is voluntarily driving change and giving consumers what they want, without government mandates.”
Chobani invests $1.2 billion in New York processing plant
After announcing a $500 million expansion in Twin Falls, Idaho last month, Chobani broke ground on a new $1.2 billion dairy processing plant in Rome, New York on April 22.
“New York is where Chobani’s journey began. It was the perfect spot to start Chobani 20 years ago, and it’s the perfect place to continue our story. Working with dedicated dairy farmers and the resilient community, we built something truly special – something bigger than the food we make. We ignited a movement toward better food made with heart, passion and only the highest-quality ingredients,” said Hamdi Ulukaya, founder and CEO of Chobani. “With our new plant in Rome and our original home in South Edmeston, we’re entering a new dimension, partnering with hard-working people across the heartland of New York to build an ecosystem of natural food production and nourish families throughout the country.”
Once home to the former Griffiss Air Force Base, the 150-acre open stretch of land will house a 1.4-million-square-foot facility that is expected to create over 1,000 full-time jobs. It will have the capacity to produce over 1 billion pounds of high-quality dairy products per year. The new plant will house up to 28 production lines designed to process approximately 12 million pounds of milk per day.
Chobani currently purchases over a billion pounds of raw milk from New York state dairy farms each year. Once the new plant reaches full capacity, Chobani will purchase an estimated 6 billion pounds per year.
USDA delivers disaster relief to farmers and ranchers
U.S. Secretary of Agriculture Brooke Rollins announced $340.6 million in USDA disaster assistance to deliver relief to farmers, ranchers and rural communities impacted by natural disasters that have caused devastation across the country.
Rollins made the announcement in North Dakota where the USDA is delivering more than $5 million to help rebuild electric infrastructure following damage from severe storms and wildfires.
The USDA will also deliver $25 million in relief to North Carolina communities and $18 million to Tennessee communities impacted by hurricanes since 2022 including hurricanes Fiona, Ian, Idalia, Helene and more.
The USDA Disaster Assistance Fund will provide relief directly to rural families, farmers and small-business owners, helping them recover, restore and rebuild to be stronger than before. The fund will be used to repair homes, businesses, infrastructure and critical services in communities hit hardest by disaster.
For more information on the USDA disaster assistance programs, visit the Rural Development Disaster Assistance webpage.
