11.3 Federal Milk Marketing Orders

Federal milk marketing orders provide stability to the dairy industry by administering terms of trade, accurate accounting, and giving milk producers reasonable assurance that they will receive proper payment for the milk they market. The order program also responds to changes in milk production patterns, marketing systems, and consumer preferences and permits the United States dairy industry to become one of the largest and most efficient in the world. The USDA has administered the federal orders, as required by the Agricultural Marketing Agreement Act, and has balanced the interests of dairy farmers with those of processors and consumers. 

 

NASDA believes that while changes may be appropriate, they should be undertaken only after careful consideration of their long-term impact. Continuation and reform of the federal milk marketing order system should be considered with continued interest in the benefit of producers, processors, and consumers, as well as meeting the objective of maintaining an orderly supply of milk.


  • Milk Pricing
    Last updated: February 08, 2010

    Milk price fluctuations cause considerable concern and hardship within the dairy industry. Appropriate measures of market supply and demand may be more reliable indicators for products and may be able to provide more stability in milk pricing.  NASDA believes that consideration and possible adoption of alternative pricing mechanisms should continue throughout the pursuit of market order consolidation and reform.

    An alternative pricing mechanism should eliminate milk price volatility and promote stability.  Consideration should also be given to creating a market development mechanism as a risk management tool and to promote dairy exports.

    Further, NASDA should be a forum for discussing dairy policy issues among the states with an aim toward developing a consensus within the dairy industry.