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California Approves Temporary Price Increase for Farm Milk

Dec 18, 2009

California's dairy producers will receive a temporary adjustment in the minimum price of milk early next year, the state's Department of Food and Agriculture announced on Wednesday. The adjustment will be in effect from January through March 2010.

The price for Class 1 milk will increase by about 35 cents per hundredweight, while the state's Class 2 and 3 milk price (comparable to the Federal Milk Marketing Order Class II price) will increase by about 25 cents. The California Class 4a (FMMO Class IV) and 4b (FMMO Class III) milk prices will rise by about 10 cents. The department estimates that the impact on the market-wide blend price for milk will be about 15 cents more per hundredweight.

These adjustments, the department said, are designed to help producers sustain their operations while waiting for milk prices to begin to return to profitability. Farm prices for fluid milk in California began to adjust in September after national milk supplies declined.

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