USDA Issues Final Decision on Amendments to Milk Orders

The United States Department of Agriculture has issued a final decision
proposing permanent amendments to all Federal milk marketing orders.

The decision proposes a permanent adoption of changes that are currently
implemented on an interim basis. The amendments are based on the record of
public hearing sessions held in 2007 in Strongsville, Ohio; Indianapolis, Ind.;
and Pittsburgh, Pa.

The manufacturing allowances adopted:

Cheese: $0.2003/lb.

Butter: $0.1715/lb.

Nonfat Dry Milk: $0.1678/lb.

Dry Whey: $0.1991/lb.

This decision would permanently adopt changes to the manufacturing cost
allowances and the butterfat yield factor used in Class III and Class IV
product-price formulas applicable to all Federal milk marketing orders. These
amendments were adopted in an interim final rule in July 2008 and became
effective in October 2008.

This document also terminates the proceeding with regard to additional
proposals that addressed the collection of manufacturing cost information, the
use of an energy cost adjustor, and providing for a cost add-on feature to
Class III and Class IV product-price formulas.

The amendments finalized by this decision require producer approval.

Source: USDA &