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What Class is Fluid Milk? Understanding Grades and Pricing Categories

4 min read

In the United States, all fluid milk sold for human consumption must be Grade A, a standard regulated by the Food and Drug Administration (FDA). However, this is only one part of the classification, as the dairy industry also uses a separate pricing system where fluid milk is known as Class I.

Quick Summary

The term "fluid milk" refers to milk intended for beverage consumption, which is legally defined as Grade A for quality and categorized as Class I for pricing under the Federal Milk Marketing Order system.

Key Points

  • Dual Classification: Fluid milk is categorized by a quality grade (Grade A) and a market pricing class (Class I).

  • Grade A for Quality: All milk sold for drinking in the U.S. must meet the stringent Grade A sanitary standards set by the FDA.

  • Class I for Pricing: Under the Federal Milk Marketing Orders (FMMOs), fluid beverage milk is classified as Class I and receives the highest minimum price.

  • Other Classes: Classes II, III, and IV are for milk used in manufactured products like yogurt, cheese, and butter, which receive lower minimum prices.

  • Safety vs. Pricing: Grade A is about public health and safety, while Class I and the other classes are about establishing a fair pricing system for dairy farmers.

  • Grade B Milk: Milk that does not meet the Grade A sanitary requirements is classified as Grade B and is only used for manufacturing purposes.

In This Article

The Dual Classification of Fluid Milk

When you buy a gallon of milk from the grocery store, it is classified in two distinct ways that reflect different aspects of the dairy industry. The first classification is a quality grade, which ensures the milk is safe for direct consumption. The second is a market classification, which determines the price farmers receive for their product based on how it is used. For fluid milk, these two designations are Grade A and Class I, respectively.

The Reason for Dual Classification

The dual system exists to address two different concerns: public health and market stability. The quality grades, like Grade A, are a matter of consumer safety, ensuring that the milk has met stringent sanitary requirements from the farm to the store. The pricing classes, like Class I, are part of the Federal Milk Marketing Order (FMMO) system established by the USDA to ensure fair pricing for dairy farmers by accounting for the different market values of milk based on its end-use.

The Quality Standard: Grade A Milk

Grade A milk, also known as fluid-grade milk, is the highest quality classification for milk produced and processed in the United States. This milk is produced under strict sanitary regulations enforced by federal, state, and local health authorities. Compliance with these standards is monitored through regular inspections and testing. Key requirements for Grade A milk include:

  • A low bacterial count, not exceeding 100,000 per milliliter.
  • A low somatic cell count, not exceeding 750,000 per milliliter.
  • Adherence to rigorous temperature and cooling standards.
  • Certification by the Interstate Milk Shippers (IMS) list for transport across state lines.

Grade B Milk: For Manufacturing Only

Grade B milk, also called manufacturing-grade milk, does not meet the strict sanitary standards required for fluid consumption. It is still safe for processing but is only used to make manufactured dairy products, such as butter, cheese, and nonfat dry milk. The USDA provides guidelines for the production and processing of Grade B milk.

The Pricing System: Class I Milk

In addition to quality grades, the dairy industry uses a four-tiered system to classify milk for pricing purposes based on its final product use. Fluid milk for beverage consumption falls into Class I, which receives the highest price.

The Federal Milk Marketing Order System

The USDA's Federal Milk Marketing Order (FMMO) program oversees the classification and pricing of milk in many regions of the country. Under this system, minimum prices are established for milk sold to handlers (processors) based on the milk's end-use. The system helps to ensure that dairy farmers receive a stable and fair price for their milk, regardless of where it is produced or used.

The Four Milk Classes (for Pricing)

  • Class I: Milk used in fluid products, including whole, reduced-fat, low-fat, and nonfat milks. This class commands the highest price due to its high consumer demand and perishable nature.
  • Class II: Milk used in soft manufactured products like yogurt, ice cream, cottage cheese, and sour cream.
  • Class III: Milk used for hard cheeses and whey products.
  • Class IV: Milk used for butter and dried milk products, such as nonfat dry milk powder.

Types of Fluid Milk under Class I and Grade A

Within the Class I and Grade A category, consumers find a variety of fluid milk products:

  • Whole Milk: Contains at least 3.25% milk fat.
  • Reduced-Fat Milk: Contains 2% milk fat.
  • Low-Fat Milk: Contains 1% milk fat.
  • Fat-Free Milk (Skim Milk): Has less than 0.1% fat.
  • Cultured Milk: Includes products like buttermilk and kefir.
  • Lactose-Reduced or Lactose-Free Milk: Treated with the lactase enzyme to break down lactose.
  • UHT Milk: Ultra-high temperature processed milk for extended shelf life.

Comparison of Milk Grades and Classes

Feature Grade A Milk Grade B Milk Class I Milk Other Milk Classes
Primary Purpose Quality standard for fluid consumption Quality standard for manufacturing Pricing category for fluid products Pricing categories for manufactured products
Regulatory Body Food and Drug Administration (FDA) U.S. Department of Agriculture (USDA) U.S. Department of Agriculture (USDA) U.S. Department of Agriculture (USDA)
Sanitary Regulations Strict and specific for fluid consumption Less stringent; for manufacturing only Based on the end-use product Based on the end-use product
Pricing Doesn't directly affect the price paid to the farmer Doesn't directly affect the price paid to the farmer Receives the highest minimum price Receives lower minimum prices, dependent on the class
End Product All fluid milk sold for drinking Non-fluid products like hard cheese, butter, and dry milk Fluid milk products for beverage consumption Cottage cheese, yogurt (Class II), hard cheese (Class III), butter (Class IV)

Conclusion

The question of what class is fluid milk requires a two-part answer. For quality and safety, it is Grade A, meeting the highest sanitary requirements for direct consumption. For pricing and market regulation, it is Class I, the highest-priced category for milk used in fluid beverage products. The co-existence of these two classification systems ensures both consumer safety and a stable economic framework for the dairy industry. Understanding this dual system provides valuable insight into how the milk we drink is regulated and priced before it ever reaches our homes. For further reading, see How Farm Milk is Priced from the International Dairy Foods Association.

Frequently Asked Questions

Grade A milk is produced under strict sanitary regulations and is fit for human fluid consumption, while Grade B milk does not meet these standards and is only used for manufacturing products like butter and cheese.

Fluid milk is designated as Class I under the Federal Milk Marketing Order (FMMO) system for pricing purposes. Class I products are considered the most perishable and therefore receive the highest minimum price.

The Food and Drug Administration (FDA) establishes the national sanitary standards for milk, and state and local health authorities enforce these regulations. The USDA provides guidelines for Grade B milk.

The U.S. Department of Agriculture (USDA) sets the minimum prices for the four classes of milk under the Federal Milk Marketing Order program, based on formulas that consider market factors like wholesale prices.

No, a single farm's milk may be allocated to different classes based on its eventual end-use by dairy processors. Farmers are paid a 'blend price' reflecting the different class prices and market utilization.

Class II includes soft products like yogurt and ice cream; Class III includes hard cheeses; and Class IV includes butter and dry milk products.

Yes, all fluid milk sold for drinking by consumers in the United States must be Grade A due to federal regulations ensuring a high level of sanitary safety.

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice.