Marin Bozic with the University of Minnesota and Edge Dairy Farmer Cooperative tells Brownfield when the new federal milk marketing orders are implemented, less milk will be depooled. “I think that we will see more milk pooled. As make allowances increase, that means that the processors have stronger incentives to bring that milk to the pool to try to get a piece of the producer price differential and forward that to their patrons.”

Bozic says under the old order, the Class III milk price did not reflect where the market needed to be. “And that manifested as a declining and then disappearing premium and more and more milk being depooled. Now, we will see more milk coming back to the pool and the over-order premiums, I think they will come back.”

USDA’s recommended changes to the 11 federal milk marketing orders were all approved by a producer referendum earlier this month.  The changes take effect June 1^st, except for the skim milk composition changes which go into effect December 1^st.