Federal Milk Marketing Order: Impact on Dairy Industry

The Federal Milk Marketing Order (FMMO) plays a significant role in regulating milk prices across the United States. For November 2025, the FMMO has reported a concerning trend with Uniform Milk Prices (UMP) falling below the $20 per hundredweight mark in multiple regions. This decline continues a pattern observed earlier in the year, posing challenges to the profitability of dairy producers.

Financial Indicators

The drop in UMP is primarily influenced by the interaction between component values and inter-class differentials. A key element in this dynamic is the negative or narrowing Producer Price Differential (PPD), which has contributed to the lower prices seen in the market.

Significant Events

The continuing decrease in milk prices is a significant event for the dairy industry, as it directly impacts the financial health of dairy producers. The ongoing adjustments in component values and PPDs highlight the complex nature of milk pricing under the FMMO system.

Modified: 2025/12/17

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