Federal Milk Marketing Order (FMMO) uniform milk prices improved in most regions in December, with largest increases in those with higher percentages of milk pooled through Class I markets.

Natzke dave
Dave Natzke
Editor Emeritus / Progressive Dairy

Administrators of the 11 FMMOs reported December prices and pooling data Jan. 9-14. Compared to November, December uniform prices were higher in 10 of 11 FMMOs. The lone exception was the Upper Midwest.

Here’s Progressive Dairy’s monthly review of the numbers to provide some additional transparency to your milk check.

Uniform milk prices, PPDs

While not an indicator of specific milk prices received by producers, regional uniform prices are a measure of the baseline to calculate milk check levels. In reviewing individual orders for December (Table 1), uniform prices rebounded from November’s lows in 10, but six markets remained below $17 per hundredweight (cwt). And, in the Upper Midwest, the uniform price dropped another 41 cents per cwt.

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With higher Class I milk prices in December (see below), Appalachian, Florida and Southeast FMMOs posted larger gains in uniform prices. Those, plus the Southwest and Central orders, saw price increases of $1 per cwt or more.

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Smaller gains were in Northeast, Mideast, California, Pacific Northwest and Arizona FMMOs. In contrast, the Upper Midwest FMMO uniform milk price declined 41 cents per cwt, from $16.62 per cwt in November to $16.21 per cwt in December. That’s the FMMO with the smallest Class I milk pooling percentage, and the only FMMO where pooling of both Class III and Class IV milk fell from November, both in terms of percentages and volume.

Comparing producer price differentials (PPDs) in December, all affected FMMOs posted increases, in some cases surpassing jumps of $2 per cwt or more (Table 1). However, PPDs have zone differentials, and those with lowest PPDs may actually have zones with small negative PPDs. And, milk handlers may also apply PPDs and other “market adjustment factors” differently to milk checks.

Class prices for December

Excluding Class I, December milk class prices were lower in comparison to the month before:

  • Class I base price: The December 2025 advanced Class I base price was $18.21 per cwt, up $1.46 from November. Despite the increase in December 2025, the Class I base price was $3.22 per cwt less than December 2024 and the lowest for that month since 2018. With December, the Class I base price averaged $18.94 per cwt in 2025, $1.41 less than 2024 and the lowest annual average since 2021.
  • Class I base price zone differentials: 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, December’s Class I prices averaged about $22.33 per cwt across all FMMOs. The highest price was in the Florida FMMO at $25.01 per cwt, and the lowest price was $20.81 per cwt in the Arizona FMMO.
  • Class I mover formula: The December 2025 Class I base skim milk price was $12.74 per cwt, an increase of $2.12 cents from November 2025 and $1.76 per cwt higher than December 2024. The spread in the monthly advanced Class III milk pricing factor ($12.74 per cwt) and advanced Class IV skim milk pricing factor ($8.49 per cwt) was $4.25, widening $1.78 from November, with Class III being the “higher-of” and used as the Class I mover in the milk pricing formula. The advanced butterfat pricing factor was $1.69 per pound, a 17-cent fall from November to December as an oversupply continues to put pressure on prices.
  • At $14.41 per cwt, the December Class II milk price was down 13 cents from November and down $6.87 from December a year ago. It’s the lowest since February 2021. The Class IV price averaged $18.33 per cwt for the year, down about $3 from 2024.
  • The December Class III milk price fell $1.32 from the previous month to $15.86 per cwt. It’s $2.76 per cwt less than December 2024 and the lowest since April 2024. The Class III price averaged $18.01 per cwt, down about 88 cents from 2024.
  • At $13.64 per cwt, the December Class IV milk price was down 25 cents from November and down $7.10 from same month a year ago. The Class IV price averaged $17.38 for the year, $3.37 less than the previous year.

The gap between December 2025 Class III and Class IV milk prices was $2.22 per cwt, continuing incentives for depooling of higher-priced Class IIII milk from some FMMO pools.

Component values, tests

The values of butterfat and protein both declined in December. Butterfat fell to about $1.58 per pound, down 13 cents from November and $1.33 less than the value of $2.91 per pound one year ago. Meanwhile, the value of milk protein settled at about $2.45 per pound in December, falling almost 56 cents from November.

The December value of nonfat solids was 90.6 cents per pound, down slightly from November. Other solids inched higher to 43.5 cents per pound.

Influencing statistical uniform prices “at test,” December’s average butterfat and protein tests in pooled milk were up slightly in all FMMOs providing preliminary data. Somatic cell counts in the few FMMOs reporting monthly averages were slightly less in December compared to November.

Pooling totals

The total milk volume pooled through FMMOs in December was 10.78 billion pounds, about 657 million pounds more than in November. One more day in the month was likely one contributor.

Class I milk pooled in December rose 207 million pounds from November to 3.59 billion pounds and represented about 33.3% of the total pool. Similarly, Class II pooling rose 24.4 million pounds in November to 1.848 billion pounds and again represented about 17% of the total pool.

Coming off November’s multiyear low, December Class III pooling rose about 292 million pounds, bringing the monthly total to 2.296 billion pounds (Table 2). It represented about 21.3% of all milk pooled.


Class IV pooling increased 133 million pounds, to 3.046 billion pounds, and represented about 28.3% of the total pool.

Looking ahead

Based on FMMO advanced prices and current futures prices, January 2026 regional uniform milk prices will decline.

  • Class I base price: As announced previously, the advanced Class I base price will start the new year weaker, dipping to $16.35 per cwt. The base price is $1.86 per cwt below the base price for December 2025 and $4.03 per cwt less than January 2025. It’s the lowest Class I base milk price since April 2021.
  • Class I base price zone differentials: 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, January’s Class I prices should average about $20.47 per cwt across all FMMOs. The highest price is in the Florida FMMO at $23.15 per cwt, and the lowest price is $18.95 per cwt in the Arizona FMMO.
  • Class I mover formula: The January 2026 Class I base skim milk price was $11.17 per cwt, a decline of $1.57 cents from December 2025. The spread in the monthly advanced Class III milk pricing factor ($11.17 per cwt) and advanced Class IV skim milk pricing factor ($8.43 per cwt) was $2.74, with Class III being the higher-of and used as the Class I mover in the milk pricing formula. The advanced butterfat pricing factor was $1.59 per pound, a 10-cent fall from December.
  • Other class prices: January Class II, III and IV milk prices will be announced on Feb. 4. As of trading on Jan. 13, the Chicago Mercantile Exchange (CME) January Class III milk futures price settled at $14.77 per cwt, down $1.09 per cwt from December and the lowest since July 2023. The January Class IV milk futures price closed at just $13.40 per cwt, down 24 cents from December and the lowest since February 2021.

If Class III-IV futures prices hold, the January Class III-IV milk price gap will be $1.37 per cwt, still providing some incentives for Class III depooling and pressuring uniform prices.

Other information

  • The USDA World Ag Supply and Demand Estimates (WASDE) report provides mixed news for dairy production, prices and feed costs. Read: WASDE outlook sees higher corn acreage, record 2025 crop 
  • December 2025 calculations for Dairy Margin Coverage (DMC) indemnity payments will be released Jan. 30. As of Jan. 14, the December 2025 DMC margin forecast is $8.91 per cwt, triggering the first indemnity payment of the year for those covered at the Tier I $9.50 per cwt margin level.
  • The enrollment period for the 2026 DMC program is open and closes on Feb. 26. Margin forecasts have also been posted for 2026, indicating indemnity payments could be distributed through September. Monthly predicted margins range below $8 per cwt for January-April and staying well below $9 per cwt for May-August. Read: 2026 Dairy Margin Coverage enrollment underway, payments predicted
  • October dairy and agricultural trade data has been released. Dairy exports provided some good news, countering a large 2025 agricultural deficit. Read: Dairy remains positive in an ag trade deficit year
  • Coming up: The USDA’s next Milk Production report is scheduled for Jan. 23. Also, watch for Progressive Dairy’s updated “Dairy risk management calendar” later this month.