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An article on Federal Milk Marketing Order make allowances, the assumed processing costs used in milk pricing formulas, says these allowances have not changed in 17 years despite rising costs. The industry is working to update them.
The article notes that higher make allowances lower the minimum milk prices farmers receive.
Raising make allowances would lower the regulated minimum milk price, so farm milk income is at stake in the rulemaking. Any change would be a structural shift in how milk prices are calculated.
dairyprocessing.comNate Donnay28 nov 2023Na 24 eerdere neerwaarts beleid-gebeurtenissen bewoog Melk (Class III) zich mediaan -0,1% over 5 sessies (33% hoger; middelste helft -1,8% tot +0,5%), en -4,6% over 20.
Bewegingen van de benchmark van elke grondstof sinds de laatste slotkoers vóór de gebeurtenis. Historische waarden bundelen eerdere gebeurtenissen van hetzelfde soort; ze beschrijven wat er gebeurde, niet wat zal gebeuren. Geen beleggingsadvies.
