The Federal Milk Marketing Order (FMMO) advanced Class I base price rose 11 cents per hundredweight (cwt) from July to August for a Class I base price of $18.93 per cwt. While a slight improvement from July, this August’s Class I base price remained $2.39 per cwt lower than the same month a year prior. This price reflects the monthly advanced Class IV milk pricing factor ($9.26 per cwt) being the “higher-of” and used as the Class I mover in the milk pricing formula.
Class I zone differentials are added to the base price principal pricing points to determine the actual Class I price in each FMMO. With those additions, August’s Class I prices will average about $23.05 per cwt across all FMMOs. The highest price is in the Florida FMMO at $25.73 per cwt and the lowest is in the Arizona FMMO at $21.53 per cwt. Those prices will impact August regional FMMO uniform milk prices, which will be announced Sept. 11-14.
August’s base skim milk price for Class I was $9.26 per cwt, 40 cents lower from the month prior. The spread in the monthly advanced Class III skim milk factor ($7.45 per cwt) and advanced Class IV skim milk pricing factor ($9.26 per cwt) was $1.81, the largest difference since January 2025. The advanced butterfat pricing factor was higher month over month, reaching $2.86 per pound and the highest price since March 2025.
