Farm and retail dairy prices actually track closely: With few exceptions, price trends have been in synch

摘要

COMMON questions I received from dairy farmers over the years include: How does the price I receive for my milk compare to the retail price of dairy products? When my milk check goes down, does the price for milk, cheese, butter and ice cream in thegrocery store go down as well? First, dairy processors and manufacturers pay for milk based on the products they produce. For example, a fluid processor pays the Class I price for milk, and a cheesemaker pays the Class III price. The price most of you receive for your milk is not the same price an individual processor or manufacturer pays for the raw milk. Federal and state marketing orders, as well as cooperatives, "blend" milk payments from the various milk buyers to pay dairy farmers a "blend price."