Milk Prices Continue To Climb In May

An article by Jenn Coyne on Progressive Dairy

The average Federal Milk Marketing Order (FMMO) uniform milk price climbed 85 cents in May for an average price of $20.87 per hundredweight (cwt) across all 11 orders. Both May’s uniform milk price and producer price differentials (PPDs) edged upward, a reflection of the current market dynamics facing dairy producers, but at a much slower pace than what was realized in March and April.

Regional uniform milk prices are used as a baseline measurement to calculate milk check levels, although not an indicator of the specific milk prices received by producers. For May, uniform milk prices rose in all orders, but the spread of growth varied with the Upper Midwest FMMO, only climbing 18 cents per cwt, while producers in the Florida FMMO saw their uniform milk price rise $1.41 per cwt (Table 1). A majority of the orders did not break through $20 per cwt. The Mideast FMMO came closest with a uniform milk price of $19.93 per cwt. Uniform milk pricing calculations gave the Florida FMMO the largest uniform milk price at $25.45 per cwt, followed by the Southeast FMMO at $24.31 per cwt.

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