Government changes support price for powder and butter
To bring better balance to the markets for butter and NDM, CCC will increase
the price it pays for butter 19.52 cents to $1.05 per pound, and decrease
its purchase price of nonfat dry milk 10 cents to $0.80 per pound. These
changes are effective for product manufactured on or after November 15, 2002
Missouri impact of revised Class III & Class IV milk pricing formulas
USDA announced November 7th that it had made the final decision on amending
the formulas used to calculate Class III and Class IV milk prices. After
voting, the formulas may be in effect in four to six weeks.
Southern Missouri producers (Southeast Order), USDA estimates
that over the next five years, these formula changes will result in an average
decline in the Southeast blend price of only $0.01 per hundredweight, while
the Federal Order system combined is expected to have an increase of $0.06.
Northern Missouri producers (Central order) would have seen
a $0.12/cwt increase in their blend price since January 1, 2000, if the new
formulas would have been in effect. Individual months would have had much
larger differences. The November "Marketing Service Bulletin" from the
Central Order Milk Marketing Administrator extensively reviews the changes.
December's MILC payment will be $1.43/cwt
The change in support prices will likely push Boston Class I prices
lower and thus raise the expected MILC payments for the next year by a small