# Change in Class I milk pricing proves costly | Capital Press

> A change made in May 2019 to the Class I skim milk mover, setting it at the average of Class III and Class IV plus 74 cents/cwt, backfired in 2020 as Class III prices rose sharply on government cheese purchases for food boxes. From May 2019 to June 2020 producers gained about $29 million from the change. NMPF's Peter Vitaliano discussed the issue at a virtual town hall.

- Date: 2020-11-05 · published 2020-11-05T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/50304-change-in-class-i-milk-pricing-proves-costly-capital-press
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

The pricing formula change is a technical milk-pricing issue with little direct effect on feed grain or meal prices, so its impact on feed markets is minor.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2022-05-31 | [Dairy group seeks clarification on milk pricing changes \| Capital Press](https://feedsoft.ai/events/41570-dairy-group-seeks-clarification-on-milk-pricing-changes-capital-press.md) | -2.9% | -3.4% |
| MILK | 2021-04-06 | [Dairy group wants inclusive discussions on milk pricing \| Capital Press](https://feedsoft.ai/events/47766-dairy-group-wants-inclusive-discussions-on-milk-pricing-capital-press.md) | +1.5% | +0.2% |
| MILK | 2021-04-20 | [Industry mulls improvements to milk marketing orders \| Capital Press](https://feedsoft.ai/events/47767-industry-mulls-improvements-to-milk-marketing-orders-capital-press.md) | -0.1% | +6.7% |
| MILK | 2018-04-10 | [USDA: California milk prices higher in federal system \| Capital Press](https://feedsoft.ai/events/65653-usda-california-milk-prices-higher-in-federal-system-capital-press.md) | -0.3% | +5.7% |
| MILK | 2021-05-06 | [Dairy farmer groups propose  Class III Plus for better milk pricing](https://feedsoft.ai/events/47240-dairy-farmer-groups-propose-class-iii-plus-for-better-milk-pricing.md) | -0.4% | -9.6% |

## Sources

- capitalpress.com: https://capitalpress.com/2020/11/05/change-in-class-i-milk-pricing-proves-costly/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.