The Federal Milk Marketing Order (FMMO) regional uniform milk prices continued to show improvement from June to July, with nine of the 11 orders reflecting a rise in prices month over month. Administrators of the 11 FMMOs reported July prices and pooling data Aug. 11-14. Here’s Progressive Dairy’s monthly review of the numbers to provide some additional transparency to your milk check.

Coyne jenn
Jenn Coyne
Editor / Progressive Dairy

Uniform milk prices, PPDs

Statistically uniform milk prices rose in nine of the 11 FMMOs from June to July with the average uniform price reflecting a 38-cent increase month over month (Table 1). The average FMMO uniform price was recorded at $20.49 per hundredweight (cwt).

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In reviewing individual orders for July, the top average milk price was $24.38 per cwt in the Florida FMMO, up $1.44 per cwt from the month prior. The FMMO with the lowest average was the Upper Midwest at $17.95 per cwt, down $1.15 per cwt from June. The California FMMO came in just behind the Upper Midwest with a uniform milk price of $18.80 per cwt, down 13 cents from June. These two orders are known for Class III pooling and cheese production, which at the moment explains the weaker prices. Cheese production has grown rampant over the summer months as milk production has recovered and processing facilities are coming fully online, but at the same time, domestic demand remains lethargic. Luckily, cheese exports seem to reach record levels month after month, preventing stockpiles of product and further price falls.

Compared to June, July base producer price differentials (PPDs) were unchanged or greater in the 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 the milk check.

Class prices for July

Milk prices in July were mixed as Class I and Class IV climbed while Class III stumbled:

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  • Class I base price: The FMMO base price rebounded $1.56 per cwt from June to July, leading to a Class I base price of $18.82 per cwt but remained $2.29 per cwt lower from the same month a year ago.
  • Class I base with zone differentials: July’s Class I prices will average about $20.12 per cwt across all FMMOs, with the highest in the Appalachian FMMO at $21.02 per cwt and the lowest in the Arizona FMMO at $19.07 per cwt.
  • Class I mover formula: July’s base skim milk price for Class I was $9.66 per cwt, increasing $1.11 per cwt from the month prior. The spread in the monthly advanced Class III skim milk pricing factor ($9.66 per cwt) and advanced Class IV skim milk pricing factor ($8.97) was 69 cents. July’s price is reflective of the monthly advanced Class III milk pricing factor being the “higher-of” and used as the Class I mover in the milk pricing formula.
  • Class II: At $19.31 per hundredweight (cwt), Class II milk price increased 88 cents from the previous month but $2.51 per cwt less than July 2024.
  • Class III: The July Class III milk price dropped $1.50 from June to $17.32 per cwt and was $2.47 per cwt below the class price during the same month last year.
  • Class IV: At $18.19 per cwt, the Class IV milk price increased 59 cents from the previous month, yet was $3.12 per cwt lower than July 2024.

Component values, tests

The value of butterfat rose for the fourth straight month to $2.84 per pound for July, up 11 cents from June, likely the result of continued demand on the global market. Milk protein stumbled 65 cents from June to $1.87 per pound, the lowest price of 2025 to date.

Compared to June, the July value of nonfat solids was up 3 cents to $1.03 per pound. Other solids were also up from June to July, but just by 1 cent from 29 cents to 30 cents per pound.

Influencing statistical uniform prices “at test,” July’s average butterfat and protein tests in pooled milk were lower in all reporting FMMOs which provide preliminary data with the spread being as small as a 7-cent month-over-month drop per cwt to as large as a 47-cent change. Somatic cell counts in the few FMMOs reporting monthly averages were greater in July compared to June.

Pooling totals

The USDA releases preliminary July milk production estimates Aug. 21. Current pooled milk volumes based on the most recent FMMO reports show that in Classes I and III, volumes increased from June to July, whereas volumes decreased in Classes II and IV during the same time period. The total milk volume pooled through FMMOs in July was 12.398 billion pounds, 268.6 million pounds more than in June.

Class III saw an impressive 18.6% more milk pooled in July than in June, representing 53.1% (6.578 billion pounds) of all milk pooled during the month (Table 2). Inversely, Class IV only represented 8.8% (1.089 billion pounds) of all milk pooled during the month, a 14.8% volume decline from June.

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July Class I pooling was up 0.6% (147 million pounds) from last month to 3.172 billion pounds of milk, representing 25.6% of all milk pooled. Class II was down 4.4% (503.9 million pounds) in July from June to 1.559 billion pounds of milk, representing 12.6% of all milk pooled.

Looking ahead

August uniform milk prices and pooling totals will be announced Sept. 11-14. Based on FMMO advanced prices and current prices are expected to strengthen over the next month.

  • Class I base price: (FMMO) advanced Class I base price rose 11 cents per 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.
  • Class I mover formula: 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.
  • Other class prices: August Class II, III and IV milk prices will be announced Sept. 4. As of end-of-trading Aug. 13, the Chicago Mercantile Exchange (CME) Class III milk futures prices settled at $17.42 per cwt. The August Class IV milk futures closed at $18.54 per cwt. If these prices hold, the July Class III-IV milk price gap will be $1.12 per cwt with Class IV on top.

Other information

Also, check the Progressive Dairy website later this month for milk production, cull cow marketing, risk management and DMC program margin updates.