Federal Milk Marketing Order goes into effect in California

With this new order more than 80% of the total U.S. milk supply will be covered by the 11 orders overseen by USDA’s Agricultural Marketing Service. California represents more than 18% of all U.S. milk production and with this new order more than 80% of the total U.S. milk supply will be covered by the 11 orders overseen by USDA’s Agricultural Marketing Service.Federal milk marketing orders are voluntary, industry-initiated, industry-driven marketing tools intended to prevent damaging price competition inherent in the marketing of highly perishable commodities. FMMOs establish the terms of trade between the farmer and the first buyer of milk by enforcing timely payments from milk processors to milk producers and developing minimum milk prices based on market values with respect to supply and demand conditions.