Missouri Dairy Business Update Commercial Agriculture
Volume 3, Number 6
June 2003

Change in Mailbox Milk prices for N. Missouri

Readers accustomed to watching the mailbox milk prices published by the USDA Agricultural Marketing Service will notice a change this month. Starting in January 2003, there will no longer be a N. Missouri mailbox price listed.

Missouri dairymen who ship into the Central Order will now need to watch the Corn Belt mailbox milk price to track what producers received in their area.

To try to avoid the bias that was creeping into the Northern Missouri mailbox milk price from some negotiated contracts, the USDA stopped publishing the series and started grouping Missouri's Central Order dairymen into the Corn Belt series for reporting purposes.

Remember the definition of Mailbox milk price is the net pay price received by dairy farmers for milk. It includes all payments received for milk sold and all costs associated with marketing the milk. The price is a weighted average for the reporting area and is reported at the average butterfat test. Mailbox price does not include any Milk Income Loss Contract (MILC) payments.


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