The Federal Milk Marketing Order (FMMO) regional uniform milk prices were mixed in May with some orders reporting a small increase in prices while others saw another month of down prices.
Administrators of the 11 FMMOs reported May prices and pooling data June 11-14. Here’s Progressive Dairy’s monthly review of the numbers to provide some additional transparency to your milk check.
Uniform milk prices, PPDs
Statistically uniform milk prices dropped in five of the 11 FMMOs from April to May as the remaining six orders reported a rise in the statistically uniform milk price over the same period (Table 1). The average uniform milk price across all FMMOs fell 99 cents from April.
In reviewing individual orders for May, the top average was $22.90 per hundredweight (cwt) in the Florida FMMO, down 81 cents from April. The FMMO with the lowest average was the Central FMMO at $18.41 per cwt, up 14 cents from April, but not a large enough improvement to counter other FMMOs’ prices for the month.
Compared to April, May base producer price differentials (PPDs) decreased in all seven applicable FMMOs (Table 1). PPDs have zone differentials, meaning some PPDs could be negative, and milk handlers may also apply PPDs and other “market adjustment factors” differently to your milk check.
Class prices for May
Milk prices mostly strengthened in May:
- Class I base price: At $18.37 per cwt, the Class I base price tumbled $1.20 from April to May and was down 9 cents from May 2024.
- Class I base with zone differentials: Class I zone differentials are added to the base price at principal pricing points to determine the actual Class I price in each FMMO. With those additions, May’s Class I prices will average $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.
- Class I mover formula: 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) shrank to 62 cents for May. This means the current but soon-to-be altered Class I mover formula positively impacted Class I prices.
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 and will start to be reflected in June prices.
- At $18.72 per cwt in May, the Class II milk price is down 50 cents from the previous month and down $2.78 per cwt from May 2024.
- The May Class III milk price rose $1.09 per cwt from April to $18.57 per cwt. It’s up 2 cents from the same month last year.
- At $18.13 per cwt, the Class IV milk price increased 21 cents from the previous month but is down $2.37 per cwt from May 2024.
The gap between May 2025 Class III and Class IV milk prices was 44 cents with Class III on top, giving some incentives for depooling of Class III milk and potentially affecting FMMO pooling.
Components values, tests
The value of butterfat continued to rebound in May with the price at $2.66 per pound, another 2 cents more than April. Milk protein rose 32 cents from April to $2.48 per pound.
Compared to April, the May value of nonfat solids was $1.01 per pound, up 2 cents. Other solids rose slightly to 32 cents per pound, up 1 cent from the previous month.
Influencing statistical uniform prices “at test,” May’s average butterfat and protein tests in pooled milk were as much as 31 cents per cwt lower to as much as 4 cents per cwt higher compared to April’s in the FMMOs providing preliminary data. Somatic cell counts in the few FMMOs reporting monthly averages were slightly higher from April to May.
Pooling totals
The USDA releases preliminary May milk production estimates June 20. Pooled milk volumes in Class I, II and IV were up from the previous month, with Class III being the sole class to post a loss on a milk volume basis (Table 2).
The total milk volume pooled through FMMOs in May was estimated at 12.92 billion pounds, 1.606 billion pounds less than in April.
May Class I pooling was up about 75.2 million pounds from April, representing about 26% of total milk pooled. Class IV was also up 557.9 million pounds, representing 25% of total milk pooled for the month and Class II was up about 288 million pounds to represent 13% of total milk pooled in May.
There was a reported fewer 2.523 billion pounds of milk pooled into Class III in May compared to April, yet the total milk pooled in that class represented 35.9% of all milk pooled for the month.
Looking ahead
June uniform milk prices and pooling totals will be announced July 11-14. Based on FMMO advanced prices and current prices, monthly uniform prices are predicted to be in the $17 to $18-per-cwt range. Prices will also reflect changes to the FMMO that went into effect June 1.
- Class I base price: At $17.26 per cwt, the Class I base price is down $1.11 from May and $2.82 less than June of last year.
- Class I base with zone differentials: Per the FMMO amendments, every regional differential was increased. With those additions, June’s Class I prices will average $21.38 per cwt.
- Class I mover formula: The spread in the monthly advanced Class III skim milk pricing factor ($8.55 per cwt) and advanced Class IV skim milk pricing factor ($8.44 per cwt) was an 11-cent difference and resulted in the Class III skim milk pricing factor used as the Class I mover.
- Other class prices: June Class II, III and IV milk prices will be announced July 2. As of trading June 13, the Chicago Mercantile Exchange (CME) Class III milk futures price closed at $18.76 per cwt. The June Class IV milk futures closed at $18.42 per cwt. If these prices hold, the June Class III-IV milk price gap will be 34 cents, adding incentives for Class III depooling.
Other information
- April’s Dairy Margin Coverage (DMC) program margin was $10.42 per cwt after feed costs were stronger than expected and the milk price fell again. (Read: April’s DMC margin lowest yet of 2025)
- Dairy cull cows marketed through U.S. slaughter plants in April were the lowest since 2006. (Read: April report on dairy cows culled for beef)
- The USDA recently announced changes to the Dairy Revenue Protection, Livestock Gross Margin and Livestock Risk Protection insurance programs that will affect dairy producers. (Read: Dairy risk management calendar: June 2025)
Also, check the Progressive Dairy website later this month for milk production, cull cow marketing, risk management and DMC program margin updates.
