Document Type

Article

Journal/Book Title/Conference

Economic Research Institute Study paper

Publisher

Utah State University

Publication Date

12-1-1987

Rights

Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at digitalcommons@usu.edu.

First Page

1

Last Page

40

Abstract

For the first time in the federal milk order system, the USDA has recommended the use of multiple component pricing in charging handlers for surplus Grade A milk used in manufactured products, and in paying producers for Grade A milk. The recommended plan would price milk on the basis of its protein and butterfat components. Th is would be a change from the historic method of pricing milk per hundredweight at 3.5 percent butterfat, plus a butterfat differential. This recommendation follows a public hearing held March 18-20, 1986, in Salt Lake City, Utah, and would apply to the new "Great Basin" federal milk order under a proposal to merge the present Great Basin and Lake Mead federal orders (USDA). The pricing plan adopted could become a model for inclusion in other federal milk orders.

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