Federal Milk Marketing orders use product-price formulas to set minimum prices as reported in the Announcement of Advanced Prices and Pricing Factors publication each month. Weighted-average product prices used for the formulas are computed from prices and volumes reported for the most recent two-week period in the National Dairy Products Sales Report. The Advanced Prices and Pricing Factors are released no later than the 23rd of the preceding month. See Price Release Dates for a schedule of release dates.
Class I prices are adjusted by the Class I differential for the county where the plant is located. Maps showing the Class I differentials by county are available here. The base zone for the Announced Class I price for the California Federal order is Los Angeles County, CA, at $2.10 per cwt.
The Class I differential is added to the base skim milk price for Class I and the advanced Butterfat Pricing Factor. Effective May 2019, the Class I skim milk price is the average of the advanced Class III and IV skim milk pricing factors plus $0.74 per hundredweight and the differential. The Class I butterfat price is the advanced butterfat pricing factor plus the specific Class I differential divided by 100 ($/lb).
The Class II skim milk and Class II nonfat solid prices are also announced in the advance of the month and are based on the Class IV advanced skim milk pricing factor plus a differential of $0.70 per cwt.
Historical CDFA class prices
California Department of Food and Agriculture minimum class prices for Classes 1, 2, 3, 4a and 4b Market Milk F.O.B. plant, by area and month.
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