Tag: Dairy pricing

The United States dairy industry operates under a highly structured system where milk is categorized into different classes based on its end use. This classification significantly influences how milk is priced, with the Federal Milk Marketing Order (FMMO) system defining Class 3 milk as that used for hard cheeses and dry whey, among other items. This system creates a uniform pricing mechanism for farmers within specific regions.

According to the Federal Milk Marketing Order (FMMO), Class IV milk accounts for a significant portion of the total milk utilized each year, primarily converted into butter and dry milk products. Understanding what is class IV milk used for provides insight into the complex and regulated system that governs the dairy industry.