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Home » producer price differentials

Articles Tagged with ''producer price differentials''

091021-natzke-fmmo-map.jpg

December FMMO uniform prices are highest since 2014

January 13, 2022
Dave Natzke
It took a roller coaster ride to get there, but December 2021 uniform milk prices in Federal Milk Marketing Orders (FMMOs) reached the highest level in more than seven years. Riding the recent wave in milk class prices, more Class III milk was pooled but more Class IV milk wasn’t.
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November uniform prices are higher, but FMMO pool changes are churning

December 14, 2021
Dave Natzke
For those looking for key numbers in Federal Milk Marketing Order (FMMO) reports, this month’s focus is on butterfat and Class IV milk.
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Senate bill would mandate FMMO hearing

December 2, 2021
Dave Natzke
The path to Federal Milk Marketing Order (FMMO) reform may be routed through Congress – where much of the most recent dairy pricing policy controversy started.
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Producer survey finds strong support for return to ‘higher-of’ formula

November 16, 2021
Dave Natzke
Preliminary results from an online survey of dairy producers found strong support for a return to the “higher-of” Class I mover pricing formula, even though in recent months producers have realized a small net benefit from the “average-of plus 74 cents” formula that replaced it in 2019.
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October brought return of depooling, negative PPDs

November 15, 2021
Dave Natzke
Federal Milk Marketing Order (FMMO) administrators reported October 2021 uniform milk prices, producer price differentials (PPDs) and milk pooling data during the week of Nov. 8.
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Future of FMMOs must face the gorillas

October 19, 2021
Jayne Sebright
The phrase, “The gorilla in the room” is often used to describe something that is obvious yet ignored. The “gorillas” in milk marketing have grown more obvious due to disruptions resulting from the COVID-19 pandemic as well as a Federal Milk Marketing Order (FMMO) system designed for a different time.
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September FMMO numbers follow summer trends

October 14, 2021
Dave Natzke
September 2021 milk marketings through Federal Milk Marketing Orders (FMMOs) extended summer-long trends resembling 2019 and pre-pandemic 2020. With a few exceptions, Class III milk pooling was more consistent, and producer price differentials (PPDs) were smaller but mostly positive. Unfortunately for producers, milk prices couldn’t shake their summer blues.
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Weekly Digest: 39% of dairy cows in ‘drought’ areas

October 13, 2021
Dave Natzke
Digest Highlights
  • Thirty-nine percent of dairy cows in ‘drought' areas
  • O’Brien to succeed Gallagher as head of DMI
  • Multichannel checkoff campaign launched to reach Gen Z
  • Stonyfield to take in some Northeast farms facing contract terminations
  • Agropur adding Wisconsin cheese production capacity
  • CDI building UHT-ELS fluid plant
  • USDA grant to fund algae dairy feed research
  • The number of the week: Dairy consumption
  • Coming up: PVMAP details; September uniform prices and PPDs

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Class III milk flows back in the pool

September 14, 2021
Dave Natzke
August 2021 Federal Milk Marketing Order (FMMO) administrator reports indicate Class I-Class III milk price inversions have ended for now, Class III milk depooling has subsided, and producer price differentials (PPDs) have stayed positive for a third straight month.
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USDA announces Pandemic Market Volatility Assistance Program for dairy

August 19, 2021
Dave Natzke
Editor's note: The USDA's Agricultural Marketing Service has posted additional information covering the Pandemic Market Volatility Assistance Program for Dairy. Milk handlers and dairy cooperatives whose producers are eligible to receive payments will be notified the week of Aug. 23. The USDA will host an information webinar for eligible handlers and cooperatives who will need to indicate intentions to participate by Sept. 10. The USDA has released some details of a $350 million Pandemic Market Volatility Assistance Program, providing targeted financial assistance to U.S. dairy producers. Progressive Dairy will provide additional details as they become available.
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